John Wiley & Sons (WLY)

The liquidity ratios of John Wiley & Sons over the analyzed period display a generally stable yet modest liquidity position.

Starting with the current ratio, which measures the company's ability to meet its short-term obligations with its short-term assets, the ratio fluctuated between approximately 0.53 and 0.78. Notably, the lowest current ratio of 0.53 occurred on April 30, 2021, indicating a phase where current assets were insufficient relative to current liabilities. Conversely, the highest ratio of 0.78 on October 31, 2021, approaches a more balanced liquidity level, though still below 1.0, signifying the company typically holds less than one dollar in current assets for every dollar of current liabilities.

The quick ratio, which refines the assessment by excluding inventory from current assets, indicates a more conservative measure of liquidity. The ratio ranged from approximately 0.33 to 0.61 during the period. The lowest point was observed on July 31, 2023, at 0.33, while the highest was 0.61 on October 31, 2021. This suggests that, at times, the company's ability to cover short-term liabilities using its most liquid assets was limited, but generally not critically low.

The cash ratio, representing the most immediate form of liquidity by focusing solely on cash and cash equivalents, remained notably below 0.20 throughout the period. The ratio trended between approximately 0.09 and 0.19, with the highest at 0.19 on October 31, 2022. This consistent low level indicates that the company's immediate cash holdings are insufficient to cover current liabilities implying reliance on other liquid assets or operational cash flows to meet obligations.

Overall, the liquidity ratios of John Wiley & Sons suggest a consistent pattern of moderate liquidity with ratios below the ideal thresholds (current ratio close to 1 and quick ratio above 0.5). The company appears to maintain sufficient liquidity to meet short-term obligations, albeit with a conservative margin, and has not experienced significant liquidity crises over the period analyzed. The stability in ratios over time indicates disciplined liquidity management, though future improvements could involve bolstering the more immediate cash reserves and ensuring current and quick ratios are maintained at levels suggesting stronger liquidity buffers.

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Additional liquidity measure

The analysis of John Wiley & Sons' cash conversion cycle (CCC) over the specified period reveals considerable fluctuations, reflecting evolving operational efficiency and liquidity management.

Initially, the CCC was relatively high in July 2020 at approximately 51.42 days, indicating that it took the company about 51 days to convert its investments in inventory and receivables into cash through payables. Over the subsequent months, there was a noted improvement, with the cycle decreasing to around 45.81 days by October 2020 and further declining to 34.79 days by January 2021. The reductions during this period suggest enhanced efficiency in managing receivables and inventories, alongside more favorable payable terms.

The trend continued into mid-2021, with the CCC reaching approximately 27.49 days in April 2021, signifying a noteworthy improvement in cash cycle management. However, the cycle experienced a resurgence, rising again to 45.89 days in October 2021. This fluctuation indicates that operational efficiencies encountered temporary setbacks or changes in working capital policies.

From late 2021 to early 2022, the CCC decreased once more, reaching approximately 27.35 days in January 2022, before gently increasing later in 2022 to a high of about 39.87 days in October 2022. These variations suggest alternating periods of efficiency and operational adjustments, possibly influenced by seasonal factors or strategic changes.

In early 2023, the CCC experienced a significant spike, reaching around 51.17 days in January, which may reflect growing receivables or inventory levels, or extended payables. However, this was followed by a substantial contraction in April 2023 to approximately 27.79 days. The most notable short-term improvement occurred in late 2023, with the cycle reaching a low of around 17.25 days in October 2023, indicating highly efficient cash conversion during that period.

Subsequently, the cycle experienced marginal increases, reaching approximately 21.02 days in January 2024, and stabilizing around mid-2024 with values near 25.97 days in April and 30.24 days in July. By late 2024, the cycle slightly declined again to approximately 28.71 days in October. In early 2025, the CCC further shortened to approximately 17.89 days in January and remained relatively stable at around 18.42 days in April 2025.

Overall, the data exhibit a pattern of cyclical improvement and setback in the cash conversion cycle, with notable peaks in early 2023 and significant reductions towards late 2023 and early 2025. The recent trends suggest more efficient working capital management, with the CCC approaching lower levels indicative of improved liquidity and operational efficiency.