Hasbro Inc (HAS)

Based on the provided data, let's analyze Hasbro Inc's liquidity ratios:

1. Current Ratio:
- The current ratio measures a company's ability to cover its short-term obligations with its current assets. A higher current ratio is generally favorable as it indicates the company has more current assets available to settle its current liabilities.
- Hasbro's current ratio has fluctuated over the years, starting at 1.60 in 2020 and declining to 1.13 by the end of 2023 before recovering to 1.60 by the end of 2024. This fluctuation indicates variations in the company's ability to meet its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. It shows how well a company can meet its short-term liabilities using its most liquid assets.
- Hasbro's quick ratio has shown a decreasing trend over the years, starting at 0.60 in 2020 and dropping to 0.26 in 2023 before recovering slightly to 0.50 in 2024. A quick ratio below 1.0 may indicate potential difficulties in meeting short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio is the most stringent liquidity ratio as it only considers the company's cash and cash equivalents in relation to its current liabilities. A higher cash ratio indicates a stronger ability to cover short-term obligations with cash on hand.
- Hasbro's cash ratio has followed a similar pattern to the quick ratio, starting at 0.60 in 2020, declining to 0.26 in 2023, and then recovering to 0.50 in 2024. This ratio indicates that Hasbro has maintained a relatively healthy level of cash reserves compared to its short-term liabilities.

In summary, the liquidity ratios of Hasbro Inc have shown fluctuations over the years, with variations in its ability to meet short-term obligations. The company's current ratio, quick ratio, and cash ratio provide insights into its liquidity position and ability to manage short-term financial commitments.

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Additional liquidity measure

The cash conversion cycle for Hasbro Inc has shown fluctuations over the years. As of December 31, 2020, the company had a cash conversion cycle of 63.09 days, indicating the average number of days it takes to convert investments in inventory and accounts receivable into cash. By December 31, 2021, this cycle increased to 79.09 days, suggesting a potential slowdown in the company's cash flow efficiency.

However, by December 31, 2022, the cash conversion cycle significantly extended to 102.72 days, signaling possible challenges in managing working capital and liquidity. Subsequently, as of December 31, 2023, the cycle decreased to 56.78 days, showing a positive improvement in converting assets into cash more efficiently.

As of the most recent data available on December 31, 2024, the cash conversion cycle stood at 68.38 days, indicating a moderate increase compared to the previous year but still below the peak seen in 2022. Overall, monitoring the cash conversion cycle is crucial for assessing Hasbro's ability to effectively manage its working capital and cash flow to support ongoing operations and growth.