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.