Haemonetics Corporation (HAE)

Liquidity ratios

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
Current ratio 2.56 2.92 3.28 3.38 3.06 3.11 2.73 3.81 1.71 2.05 2.42 3.00 2.74 3.44 2.25 1.86 2.20 2.27 2.37 2.10
Quick ratio 1.28 1.55 2.00 1.96 1.85 1.79 0.92 1.19 0.95 0.67 0.67 0.76 1.26 1.73 1.24 1.02 1.10 1.16 1.20 1.20
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

Haemonetics Corporation's liquidity ratios fluctuated over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, ranged from a low of 1.71 to a high of 3.81. The current ratio was strong overall, indicating that the company had more than enough current assets to cover its short-term liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, ranged from 0.67 to 2.00. The quick ratio showed some variability, but overall, it revealed that Haemonetics had an acceptable level of quick assets to cover its immediate liabilities.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, ranged from 0.47 to 1.34. Despite some fluctuations, the cash ratio generally showed that Haemonetics had a sufficient amount of cash on hand to meet its short-term obligations.

Overall, the liquidity ratios of Haemonetics Corporation demonstrate that the company maintained a strong liquidity position during the periods under review, with ample current assets and cash to meet its short-term financial obligations.

Additional liquidity measure

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 conversion cycle days 107.06 114.59 97.90 102.59 99.79 131.25 75.10 89.04 152.70 102.37 114.25 118.09 176.55 176.27 167.47 155.29 144.09 138.61 137.13 123.41

The cash conversion cycle of Haemonetics Corporation has shown fluctuations over the past few quarters. The company's cash conversion cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we can see that the cash conversion cycle ranged from a low of 75.10 days to a high of 176.55 days over the past 20 quarters. A lower number of days indicates that the company is able to convert its resources into cash faster, while a higher number of days suggests a longer time to convert resources into cash.

Analyzing the trend, we observe that there have been periods of improvement in the cash conversion cycle, such as in September 2022 and June 2020 when the cycle was relatively lower at 75.10 days and 155.29 days respectively. On the other hand, there have been instances of longer cash conversion cycles, with peaks in March 2021 and December 2020, indicating potential challenges in inventory management or collection of receivables.

Overall, it is important for Haemonetics Corporation to focus on optimizing its cash conversion cycle to improve working capital management efficiency. This could involve streamlining inventory management, enhancing collection processes, and optimizing payment terms with suppliers to shorten the cycle and improve cash flow generation.