Haemonetics Corporation (HAE)

Cash ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash and cash equivalents US$ in thousands 178,800 193,978 351,005 285,719 284,466 224,002 241,200 214,948 259,496 236,877 192,420 173,462 192,305 189,002 279,169 275,725 137,311 126,417 112,030 190,234
Short-term investments US$ in thousands 1,146 2,576 2,442 1,110 1,687 1,114
Total current liabilities US$ in thousands 300,383 261,755 264,215 236,939 251,816 226,889 262,175 180,487 442,266 355,411 288,470 228,339 253,495 194,384 338,568 407,827 274,822 256,692 240,066 293,665
Cash ratio 0.60 0.75 1.34 1.22 1.13 0.99 0.92 1.19 0.59 0.67 0.67 0.76 0.76 0.97 0.82 0.68 0.50 0.49 0.47 0.65

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,800K + $—K) ÷ $300,383K
= 0.60

The cash ratio of Haemonetics Corporation has fluctuated over the past few quarters, reflecting the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend shows a generally positive movement from the fourth quarter of 2019 to the third quarter of 2023, with some fluctuations in between. The cash ratio was above 1.0 in some quarters, indicating that the company had more than enough cash to cover its short-term liabilities. This demonstrates a strong liquidity position and ability to meet its immediate financial obligations.

However, there were quarters where the cash ratio dropped below 1.0, suggesting a lower level of liquidity and potential challenges in meeting short-term obligations solely with cash on hand. It's worth noting that having a cash ratio significantly above 1.0 may also indicate that the company is not efficiently utilizing its cash resources.

Overall, a higher cash ratio is generally preferred as it indicates a stronger ability to weather unexpected financial challenges. Haemonetics Corporation should continue to monitor its cash position and liquidity to ensure it can meet its short-term obligations efficiently.


Peer comparison

Mar 31, 2024