Hasbro Inc (HAS)

Liquidity ratios

	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	Jun 30, 2019	Mar 31, 2019
Current ratio	1.13	1.60	1.29	1.34	1.37	1.38	1.43	1.59	1.52	1.52	1.77	1.85	1.60	1.62	1.61	1.91	5.37	2.33	2.64	2.77
Quick ratio	0.77	0.64	0.56	0.20	0.74	0.74	0.68	0.95	1.00	1.08	1.02	1.28	1.18	1.11	0.98	1.27	4.79	1.71	1.85	1.96
Cash ratio	0.26	0.09	0.11	0.20	0.23	0.23	0.27	0.50	0.39	0.48	0.60	0.82	0.60	0.49	0.52	0.71	3.66	0.74	1.10	1.29

Hasbro, Inc.'s liquidity ratios provide insight into the company's ability to pay off its short-term obligations. Looking at the current ratio, which measures the company's ability to cover its current liabilities with its current assets, we see that there has been some fluctuation over the past eight quarters. The ratio has ranged from 1.13 to 1.60 during this period, with the latest value of 1.13 in Q4 2023 indicating a slight decline in short-term liquidity compared to the previous quarter.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Hasbro's quick ratio has varied from 0.78 to 1.28 over the same period, with the latest value of 0.97 in Q4 2023 suggesting a decrease in the company's ability to quickly cover its current liabilities without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio, focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. Hasbro's cash ratio has shown fluctuations, ranging from 0.23 to 0.82 over the past eight quarters. The Q4 2023 value of 0.47 indicates a moderate level of cash liquidity compared to previous quarters.

Overall, while Hasbro's liquidity ratios have experienced some variability, the company appears to have maintained a generally acceptable level of liquidity to meet its short-term financial obligations. It will be important for stakeholders to monitor these ratios closely to ensure that Hasbro maintains a healthy liquidity position in the future.

Additional liquidity measure

		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	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	74.20	106.92	103.48	49.11	100.64	96.01	78.03	73.62	82.73	80.78	68.80	70.49	89.01	111.09	97.79	87.47	124.90	123.62	97.94	89.38

The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. It consists of three main components: days inventory outstanding (DIO), days sales outstanding (DSO), and days payables outstanding (DPO).

Looking at the data for Hasbro, Inc. over the past eight quarters, we observe fluctuations in the cash conversion cycle. In Q2 and Q3 of 2023, the company's cash conversion cycle reached its highest levels at 131.92 days and 127.08 days, respectively. This indicates that it took Hasbro longer to convert its investments in inventory into sales and then into cash during these periods.

Conversely, in Q1 of 2022, the cash conversion cycle was at its lowest at 95.65 days, suggesting that Hasbro was able to more efficiently manage its inventory, sales, and collections processes during that quarter.

Overall, it is essential for Hasbro, Inc. to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy cash flows. Periods of extended cash conversion cycles may indicate inefficiencies in inventory management or slower collections from customers, which could impact the company's liquidity and overall financial health.