Hasbro Inc (HAS)

The liquidity ratios of Hasbro, Inc. provide insights into the company's ability to meet its short-term financial obligations. The current ratio has been declining over the years, from 5.37 in 2019 to 1.13 in 2023. This indicates that Hasbro may have less current assets relative to its current liabilities in 2023 compared to previous years, suggesting potential challenges in meeting its short-term obligations.

Similarly, the quick ratio has also been decreasing, from 5.01 in 2019 to 0.97 in 2023. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The declining trend indicates that Hasbro's ability to cover its short-term liabilities with its most liquid assets, excluding inventory, has weakened over time.

Furthermore, the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also shown a consistent decline from 3.89 in 2019 to 0.47 in 2023. This decline suggests that Hasbro may have relatively less cash available to cover its immediate liabilities in 2023 compared to previous years.

Overall, the declining trend in Hasbro's liquidity ratios, specifically the current, quick, and cash ratios, indicate a potential deterioration in the company's short-term liquidity position. This could raise concerns about its ability to meet upcoming financial obligations without sufficient liquid assets on hand. Further analysis and monitoring of Hasbro's liquidity management strategies are essential to address these challenges and ensure financial stability.

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Additional liquidity measure

The cash conversion cycle for Hasbro, Inc. has shown fluctuating trends over the last five years. In 2023, the company's cash conversion cycle decreased to 73.25 days from 118.21 days in 2022, indicating an improvement in the efficiency of converting its investments in inventory and accounts receivable into cash. This reduction in the cash conversion cycle suggests that Hasbro, Inc. has been able to manage its working capital more effectively in the most recent year compared to the prior year.

Furthermore, when compared to 2021 and 2020, where the cash conversion cycle was 79.98 days and 86.60 days, respectively, the 2023 figure reflects a better performance in terms of managing cash flow and liquidity. The decrease in the cash conversion cycle in 2023 indicates that the company is taking less time to convert its resources into cash, which can be a positive signal of operational efficiency and effective management of working capital.

Looking back at 2019, where the cash conversion cycle was significantly higher at 129.71 days, the substantial improvement in 2023 highlights Hasbro, Inc.'s efforts in streamlining its cash flow processes and optimizing its working capital management over the past few years. The decreasing trend in the cash conversion cycle suggests that the company has been successful in enhancing its liquidity position and overall financial performance through more efficient management of its operational cash flow cycle.