Clean Harbors Inc (CLH)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	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	1.95	1.91	1.91	1.92
Quick ratio	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	1.47	1.43	1.41	1.40
Cash ratio	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	0.58	0.48	0.41	0.38

Clean Harbors, Inc. has consistently maintained healthy liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been above 1.9 in each quarter, indicating a strong ability to meet its financial commitments. Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also remained above 1.6, indicating a solid ability to meet short-term obligations without relying on inventory liquidation.

Looking at the cash ratio, which specifically assesses the company's ability to cover current liabilities with cash and cash equivalents, Clean Harbors has shown a fluctuating trend but with values mostly above 0.5. This suggests that the company has a moderate ability to cover its short-term obligations with its readily available cash resources.

Overall, Clean Harbors, Inc. maintains strong liquidity positions as evidenced by consistently high current and quick ratios, indicating a healthy ability to meet short-term financial obligations, with a reasonable cash reserve to cover immediate liabilities.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	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	58.11	43.54	45.83	45.17

The cash conversion cycle for Clean Harbors, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 61.51 days, which was an improvement compared to the previous quarter. This indicates that the company was able to convert its inventory and receivables into cash more efficiently in Q4 2023.

However, when comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there was only a slight improvement in the cash conversion cycle. This suggests that the company may be facing challenges in optimizing its working capital management strategies over the long term.

Overall, Clean Harbors, Inc. has shown some volatility in its cash conversion cycle, with fluctuations in efficiency in converting its resources into cash. It is recommended that the company closely monitors and analyzes its working capital processes to improve operational efficiency and maintain a healthy cash conversion cycle in the future.