Haemonetics Corporation (HAE)

Liquidity ratios

Mar 31, 2025 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
Current ratio 1.62 3.97 3.49 3.76 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
Quick ratio 0.88 2.10 1.87 2.11 1.29 1.55 2.00 1.96 1.85 1.79 1.58 2.00 0.95 1.10 1.16 1.34 1.26 1.73 1.24 1.02
Cash ratio 0.53 1.27 1.09 1.33 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

Haemonetics Corporation's liquidity position, as reflected by its current ratio, has shown fluctuations over the reporting periods, ranging from a low of 1.71 to a high of 3.97. The current ratio indicates the company's ability to meet its short-term obligations with its current assets, with a higher ratio generally signaling stronger liquidity.

The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. Haemonetics Corporation's quick ratio fluctuated between 0.88 and 2.11 over the periods analyzed. A quick ratio above 1 indicates a company has sufficient liquid assets to cover its current liabilities without relying on selling inventory.

The cash ratio, which is the most conservative liquidity ratio, shows the company's ability to cover current liabilities with its most liquid assets (cash and cash equivalents). Haemonetics Corporation's cash ratio varied from 0.53 to 1.33, indicating that the company maintained a moderate level of cash reserves relative to its current liabilities.

Overall, Haemonetics Corporation generally maintained a healthy liquidity position during the reporting periods, with the current and quick ratios consistently above 1 and the cash ratio showing a satisfactory level of liquidity. However, fluctuations in these ratios suggest some variability in the company's ability to meet short-term obligations solely from its liquid assets.

Additional liquidity measure

Mar 31, 2025 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
Cash conversion cycle days 272.18 223.92 233.11 224.70 200.73 211.61 179.32 186.24 184.82 189.74 196.39 217.16 234.19 244.35 257.49 261.36 263.79 266.92 258.24 238.89

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

From June 30, 2020, to September 30, 2021, the cash conversion cycle increased steadily, indicating potential inefficiencies in managing working capital. This prolonged cycle could signify delays in inventory turnover or collection of accounts receivable.

However, from December 31, 2021, to March 31, 2025, the cash conversion cycle exhibited a more erratic pattern. The significant decrease in the cycle from December 31, 2022, to June 30, 2023, could suggest improvements in inventory management or quicker collection of receivables.

Subsequently, the cycle increased notably as of September 30, 2024, and December 31, 2024, possibly pointing to issues such as extended payment terms to suppliers or challenges in converting sales into cash effectively.

Overall, analyzing the cash conversion cycle of Haemonetics Corporation indicates the potential need for the company to implement strategies to optimize working capital management and enhance operational efficiencies to ensure a healthy cash flow position in the future.