Hasbro Inc (HAS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,323,600 | 2,999,100 | 3,728,100 | 3,846,600 | 6,747,520 |
| Total current liabilities | US$ in thousands | 2,056,400 | 2,189,700 | 2,455,900 | 2,403,300 | 1,257,080 |
| Current ratio | 1.13 | 1.37 | 1.52 | 1.60 | 5.37 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,323,600K ÷ $2,056,400K
= 1.13
The current ratio of Hasbro, Inc. has been gradually decreasing over the past five years, indicating a potential weakening in the company's short-term liquidity position.
In 2019, the current ratio was exceptionally high at 5.37, suggesting that Hasbro had significant short-term assets to cover its current liabilities. However, this figure dramatically dropped to 1.60 in 2020 and continued to decline in subsequent years to 1.52 in 2021, 1.37 in 2022, and 1.13 in 2023.
A current ratio below 2.0 generally raises concerns about a company's ability to meet its short-term obligations using its current assets. Hasbro's decreasing current ratio trend may indicate potential difficulties in managing its current liabilities with the available current assets. Therefore, it is important for analysts to closely monitor the company's liquidity position and management of working capital in the coming periods to assess any potential risks.