John Wiley & Sons (WLY)

Liquidity ratios

Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019
Current ratio 0.52 0.54 0.70 0.68 0.60 0.70 0.76 0.64 0.57 0.60 0.78 0.63 0.53 0.59 0.75 0.68 0.66 0.65 0.76 0.67
Quick ratio 0.35 0.36 0.39 0.33 0.47 0.54 0.60 0.50 0.45 0.46 0.61 0.48 0.41 0.44 0.57 0.54 0.55 0.51 0.59 0.53
Cash ratio 0.10 0.13 0.14 0.12 0.13 0.17 0.19 0.14 0.10 0.13 0.16 0.11 0.09 0.11 0.14 0.14 0.22 0.14 0.18 0.14

The liquidity ratios of John Wiley & Sons reflect the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a declining trend over the period analyzed. The ratio stood at 0.52 as of April 30, 2024, indicating that the company may face difficulty in meeting its current liabilities with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited a declining trend over the period. The quick ratio was 0.35 as of April 30, 2024, suggesting that the company has a relatively lower ability to cover its current liabilities with its most liquid assets.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, also decreased over the period. As of April 30, 2024, the cash ratio was at 0.10, indicating that John Wiley & Sons may have limited cash reserves to meet its short-term obligations.

Overall, the declining trend in liquidity ratios suggests that John Wiley & Sons may face challenges in meeting its short-term financial obligations. It is essential for the company to closely monitor and manage its liquidity position to ensure financial stability and meet its immediate payment obligations.

Additional liquidity measure

Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019
Cash conversion cycle days 37.37 27.93 24.54 26.25 46.95 51.75 44.35 45.53 51.27 40.29 50.35 47.82 47.27 48.52 51.51 55.30 52.87 56.92 42.32 54.04

The cash conversion cycle of John Wiley & Sons has fluctuated over the recent quarters. The cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. A shorter cycle indicates better liquidity and efficiency in managing working capital.

In the latest quarter, as of April 30, 2024, the cash conversion cycle was 37.37 days, showing an increase compared to the previous quarter (27.93 days). However, it is lower than the cycle reported a year ago (46.95 days). This suggests that John Wiley & Sons took longer to convert its resources into cash in the latest quarter, which could be due to changes in inventory levels or sales patterns.

Over the past few quarters, the company has experienced fluctuations in its cash conversion cycle, with periods of both improvements and deteriorations. It is essential for management to closely monitor and manage inventory levels, accounts receivable collection, and accounts payable to optimize the cash conversion cycle and enhance overall financial performance.