John Wiley & Sons (WLY)
Liquidity ratios
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.52 | 0.60 | 0.57 | 0.53 | 0.66 |
| Quick ratio | 0.35 | 0.47 | 0.45 | 0.41 | 0.55 |
| Cash ratio | 0.10 | 0.13 | 0.10 | 0.09 | 0.22 |
The liquidity ratios for John Wiley & Sons have shown a declining trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has decreased from 0.66 in 2020 to 0.52 in 2024. This suggests that the company may be facing challenges in meeting its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also decreased from 0.55 in 2020 to 0.35 in 2024. A declining quick ratio indicates that the company may have difficulty meeting its immediate financial obligations without relying on inventory.
The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, has also shown a decreasing trend from 0.22 in 2020 to 0.10 in 2024. This decline suggests that the company may have limited cash resources available to meet its short-term obligations.
Overall, the decreasing trend in all three liquidity ratios indicates a potential liquidity risk for John Wiley & Sons. It may face challenges in meeting its short-term financial obligations if this trend continues. Investors and stakeholders should closely monitor the company's liquidity position to ensure its long-term financial health.
Additional liquidity measure
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 37.30 | 46.84 | 50.83 | 47.58 | 53.18 |
The cash conversion cycle of John Wiley & Sons has shown a decreasing trend over the past five years. In April 2024, the company's cash conversion cycle was 37.30 days, compared to 46.84 days in April 2023 and 50.83 days in April 2022. This indicates that the company has been able to manage its cash flow and working capital more efficiently in recent years.
A decreasing cash conversion cycle suggests that John Wiley & Sons has been able to collect cash from its customers, convert inventory to sales, and pay suppliers more quickly. This can be a positive sign of effective management of working capital and operational efficiency.
However, it's important to note that the cash conversion cycle is just one metric and should be analyzed in conjunction with other financial ratios and metrics to get a comprehensive view of the company's financial performance and efficiency.