The Hain Celestial Group Inc (HAIN)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	54,307	53,364	65,512	75,871	37,771
Short-term investments	US$ in thousands	—	8,649	560	646	562
Receivables	US$ in thousands	179,190	160,948	170,661	174,066	170,969
Total current liabilities	US$ in thousands	281,503	230,867	269,303	290,434	300,277
Quick ratio		0.83	0.97	0.88	0.86	0.70

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($54,307K + $—K + $179,190K) ÷ $281,503K
= 0.83

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.

Analyzing The Hain Celestial Group Inc's quick ratio over the past five years, we can see fluctuations in the ratio. In the most recent year, as of June 30, 2024, the quick ratio was 0.83, indicating that the company may face challenges in meeting its short-term obligations using its quick assets alone.

Comparing this to the previous year's quick ratio of 0.97, we note a slight decline. However, it is worth mentioning that the quick ratio for 2024 is still higher than the ratios for 2022 and 2021, which were 0.88 and 0.86 respectively.

The lowest quick ratio in recent years was observed in 2020 at 0.70, indicating a potential liquidity concern back then. The subsequent improvements in the quick ratio in 2021, 2022, and 2023 showed progress before the slight decline witnessed in 2024.

This analysis suggests that while The Hain Celestial Group Inc has shown some improvement in liquidity over the years, the recent dip in the quick ratio may signal a need for the company to closely monitor its ability to meet short-term obligations with its readily available assets.