The Hain Celestial Group Inc (HAIN)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019
Current ratio 1.98 2.10 2.24 2.29 2.56 2.40 2.46 2.31 2.23 1.98 1.94 1.80 1.99 1.80 1.74 1.86 1.87 2.00 1.85 1.77
Quick ratio 0.83 0.91 0.94 0.83 0.97 0.92 0.89 0.87 0.88 0.77 0.81 0.71 0.86 0.74 0.64 0.59 0.70 0.93 0.78 0.71
Cash ratio 0.19 0.21 0.22 0.19 0.27 0.20 0.18 0.20 0.25 0.21 0.26 0.10 0.26 0.16 0.13 0.09 0.13 0.14 0.12 0.07

The liquidity ratios of The Hain Celestial Group Inc indicate its ability to meet its short-term obligations and operational needs. The current ratio has fluctuated over the periods, ranging from 1.74 to 2.56. This ratio shows that the company has sufficient current assets to cover its current liabilities, with a recent peak of 2.56 indicating a strong short-term liquidity position.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory, has also varied, with values between 0.59 and 0.97. Although the quick ratio is generally lower than the current ratio, the company has maintained a level above 1, which suggests that it can meet its short-term obligations without relying on selling inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown fluctuations between 0.07 and 0.27. A higher cash ratio indicates a stronger ability to cover short-term obligations with cash on hand, with The Hain Celestial Group Inc showing a recent peak at 0.27.

Overall, the company's liquidity ratios reflect a generally healthy liquidity position, with improvements in some periods. However, fluctuations in these ratios highlight the importance of monitoring the company's ability to manage its short-term obligations effectively.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 56.15 61.38 64.17 65.78 67.03 69.14 70.34 66.09 60.30 55.37 55.12 56.25 54.58 60.38 55.04 55.41 49.41 55.14 57.94 59.03

The cash conversion cycle of The Hain Celestial Group Inc has shown some fluctuations over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory into cash receipts from sales of the inventory. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital.

Analyzing the historical data, we observe that the cash conversion cycle has ranged from a low of 49.41 days to a high of 70.34 days over the past two years. The company seems to have experienced improvements in its working capital management during some quarters, as evidenced by the decrease in the number of days in the cash conversion cycle. For instance, in March 2020, the company had a relatively low cash conversion cycle of 49.41 days, which suggests that the company was able to convert its inventory into cash relatively quickly during that period.

On the other hand, there have been quarters where the cash conversion cycle increased, indicating potential challenges in managing working capital efficiently. For example, in December 2023 and March 2023, the cash conversion cycle increased to 64.17 days and 69.14 days, respectively, reflecting a longer time taken to convert inventory investments into cash receipts. This could signify issues such as slower sales or inventory management problems during those periods.

Overall, it is essential for The Hain Celestial Group Inc to closely monitor its cash conversion cycle and aim to optimize its working capital management to ensure efficient operations and liquidity. By analyzing trends in the cash conversion cycle, the company can identify areas for improvement and implement strategies to enhance its working capital efficiency.