Haynes International Inc (HAYN)
Liquidity ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 7.02 | 5.74 | 4.87 | 9.20 | 6.19 |
| Quick ratio | 1.55 | 1.28 | 1.44 | 2.67 | 1.83 |
| Cash ratio | 0.14 | 0.10 | 0.64 | 1.24 | 0.52 |
Haynes International Inc.'s liquidity ratios demonstrate its ability to meet short-term obligations and manage cash resources. The current ratio has steadily improved from 2019 to 2023, reaching 7.02. This indicates the company's enhanced capacity to cover current liabilities with current assets. The quick ratio, which excludes inventory from current assets, also exhibits a positive trend, indicating a consistent ability to meet short-term obligations without relying on selling inventory. The cash ratio, while fluctuating, suggests a generally adequate ability to cover short-term liabilities with cash and cash equivalents. Overall, the company's liquidity ratios reflect a healthy financial position, signifying a strong ability to meet short-term obligations and effectively manage working capital.
Additional liquidity measure
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 317.22 | 326.39 | 278.41 | 274.15 | 233.13 |
The cash conversion cycle of Haynes International Inc. has shown fluctuations over the past five years. The trend indicates that the company's ability to convert its resources, such as inventory and accounts receivable, into cash has varied. In 2023, the cash conversion cycle increased to 341.83 days from 358.23 days in 2022. This is a negative indicator as it implies that the company took longer to convert its investments in inventory and accounts receivable into cash during this period.
The cash conversion cycle in 2021 was 310.08 days, showing an increase from 301.02 days in 2020. This change suggests that the company's efficiency in managing its working capital slightly declined. However, comparison with 2019 reveals an improvement, as the cash conversion cycle was 251.39 days, indicating that the company took less time to convert its resources into cash at that time.
In summary, the cash conversion cycle of Haynes International Inc. has experienced fluctuations, which may indicate varying effectiveness in managing working capital and converting resources into cash over the years. Further analysis of the components contributing to the cycle would be valuable in understanding the company's working capital management.