Clean Harbors Inc (CLH)

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 2.21 2.10 2.10 2.07 1.98 2.00 2.02 2.05 1.99 2.01 1.94 1.98 1.88 2.41 2.36 2.37 2.40 2.33 2.37 2.26
Quick ratio 1.64 1.51 1.49 1.46 1.48 1.47 1.43 1.45 1.49 1.51 1.44 1.44 1.43 1.91 1.86 1.83 1.86 1.77 1.78 1.75
Cash ratio 0.72 0.53 0.46 0.44 0.53 0.43 0.36 0.41 0.54 0.51 0.42 0.45 0.58 0.96 0.94 0.88 0.90 0.83 0.84 0.75

Clean Harbors Inc's current ratio has shown some fluctuations over the years, ranging from a high of 2.41 in September 2021 to a low of 1.88 in December 2021. The current ratio measures the company's ability to meet its short-term obligations with its current assets, and a ratio above 1 indicates a company can cover its liabilities.

The quick ratio, which excludes inventory from current assets, also displayed variability, with a peak of 1.91 in September 2021 and a trough of 1.43 in December 2021. This ratio provides a more conservative measure of liquidity than the current ratio, as it considers only the most liquid assets.

In terms of the cash ratio, which is the most stringent liquidity ratio as it focuses solely on cash and cash equivalents, Clean Harbors Inc ranged from a low of 0.36 in June 2023 to a high of 0.96 in September 2021. This ratio indicates the company's ability to cover its current liabilities using only its cash on hand.

Overall, Clean Harbors Inc appears to maintain healthy liquidity levels based on these ratios, with the current ratio consistently above 1.5, the quick ratio generally above 1, and the cash ratio demonstrating the company's ability to meet short-term obligations with its available cash. However, the downward trend in some ratios towards the end of the period should be monitored for any potential liquidity challenges in the future.

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 56.74 59.94 64.47 61.60 56.40 60.58 63.06 57.40 57.62 64.21 67.25 65.58 63.59 67.60 69.09 74.51 74.51 50.52 49.23 45.67

Clean Harbors Inc's cash conversion cycle indicates the efficiency of its working capital management over the given period. The trend shows fluctuations in the cycle length, with improvements observed towards the end of the time frame.

Starting at 45.67 days on March 31, 2020, the cycle increased to a peak of 74.51 days by December 31, 2020. This sudden spike could imply delays in converting inventory to sales and collecting receivables during that period.

Subsequently, there was a gradual decline in the cycle, with a noticeable improvement in efficiency by December 31, 2024, where the cycle reduced to 56.74 days. This improvement suggests more effective management of cash flows, inventory turnover, and accounts receivable collection by the company.

Overall, despite fluctuations, the decreasing trend in the cash conversion cycle indicates that Clean Harbors Inc has been working towards optimizing its working capital management and liquidity position over the analyzed period.