Dentsply Sirona Inc (XRAY)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.10 | 1.25 | 1.33 | 1.43 | 1.38 | 1.57 | 1.51 | 1.41 | 1.62 | 1.50 | 1.52 | 1.45 | 1.55 | 1.60 | 1.43 | 1.40 | 1.36 | 2.19 | 3.10 | 2.02 |
| Quick ratio | 0.17 | 0.19 | 0.21 | 0.22 | 0.26 | 0.25 | 0.25 | 0.23 | 0.33 | 0.32 | 0.29 | 0.29 | 0.30 | 0.25 | 0.27 | 0.26 | 0.36 | 1.08 | 1.45 | 0.26 |
| Cash ratio | 0.17 | 0.19 | 0.21 | 0.22 | 0.26 | 0.25 | 0.25 | 0.23 | 0.33 | 0.32 | 0.29 | 0.29 | 0.30 | 0.25 | 0.27 | 0.26 | 0.36 | 1.08 | 1.45 | 0.26 |
Dentsply Sirona Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has fluctuated over the years but generally remained above 1, ranging from a low of 1.10 to a high of 3.10. This suggests that the company can cover its current liabilities with its current assets, although the ratio has shown some volatility.
The quick ratio, which excludes inventory from current assets, has been consistently lower than the current ratio, indicating a lower level of liquidity. It ranged from 0.17 to 1.45, with the company having limited ability to cover its short-term obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity, has also been relatively low, ranging from 0.17 to 1.45. This indicates that Dentsply Sirona may have difficulty meeting its immediate obligations with its cash and cash equivalents alone.
Overall, Dentsply Sirona Inc's liquidity ratios show a mixed picture, with the current ratio generally above 1 but the quick and cash ratios reflecting lower liquidity levels. It suggests that the company may need to manage its short-term liquidity position more effectively to ensure it can meet its financial obligations as they come due.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 112.25 | 121.14 | 119.25 | 119.84 | 121.21 | 128.09 | 130.19 | 133.19 | 127.35 | 118.34 | 113.71 | 104.37 | 97.33 | 101.88 | 104.62 | 105.74 | 100.97 | 106.62 | 119.97 | 118.16 |
The cash conversion cycle for Dentsply Sirona Inc has shown fluctuations over the analyzed periods. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash quickly, while a longer cycle may indicate inefficiencies in managing working capital.
Based on the data provided:
- The cash conversion cycle ranged from a high of 133.19 days on March 31, 2023, to a low of 97.33 days on December 31, 2021.
- The cycle has generally exhibited a decreasing trend from 2023 to 2024, indicating potential improvements in working capital management.
- The company experienced a slight increase in the cash conversion cycle from December 31, 2022, to March 31, 2024, before stabilizing around 119-121 days on June 30, 2024, and September 30, 2024.
Overall, while Dentsply Sirona Inc has experienced fluctuations in its cash conversion cycle, it is essential for the company to closely monitor and optimize its working capital management to ensure efficient cash flow generation and sustained financial health.