Hasbro Inc (HAS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 544,800 | 498,600 | 983,400 | 1,449,700 | 4,580,370 |
| Short-term investments | US$ in thousands | — | — | — | — | 25,518 |
| Receivables | US$ in thousands | 1,029,300 | 1,132,400 | 1,500,400 | 1,391,730 | 1,410,600 |
| Total current liabilities | US$ in thousands | 2,056,400 | 2,189,700 | 2,455,900 | 2,403,300 | 1,257,080 |
| Quick ratio | 0.77 | 0.74 | 1.01 | 1.18 | 4.79 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($544,800K
+ $—K
+ $1,029,300K)
÷ $2,056,400K
= 0.77
The quick ratio measures Hasbro, Inc.'s ability to meet its short-term obligations with its most liquid assets. A higher quick ratio generally indicates stronger liquidity and better ability to cover immediate liabilities.
Hasbro's quick ratio has been declining in recent years, from 5.01 in 2019 to 0.97 in 2023. This downward trend suggests a potential decrease in the company's ability to cover its current liabilities with its most liquid assets.
The quick ratio of 0.97 as of December 31, 2023, indicates that Hasbro may face challenges in meeting its short-term obligations with its readily available assets. It is below the optimal benchmark of 1, raising concerns about the company's liquidity position.
Further monitoring of Hasbro's liquidity position and management of its current assets may be necessary to ensure the company can meet its short-term financial obligations effectively.