Haynes International Inc (HAYN)
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 | 7.62 | 7.02 | 6.51 | 6.85 | 5.61 | 5.74 | 3.16 | 4.03 | 5.45 | 4.87 | 6.41 | 7.54 | 9.02 | 9.20 | 5.23 | 4.87 | 5.93 | 6.19 | 5.56 | 5.57 |
| Quick ratio | 1.60 | 1.55 | 1.31 | 1.57 | 1.17 | 1.28 | 0.64 | 0.93 | 1.14 | 1.44 | 2.25 | 2.56 | 2.76 | 2.67 | 1.64 | 1.43 | 1.54 | 1.83 | 1.51 | 1.42 |
| Cash ratio | 0.20 | 0.14 | 0.16 | 0.22 | 0.13 | 0.10 | 0.07 | 0.13 | 0.22 | 0.64 | 1.31 | 1.50 | 1.60 | 1.24 | 0.88 | 0.63 | 0.52 | 0.52 | 0.33 | 0.16 |
Haynes International Inc.'s liquidity ratios have shown varying trends over the past eight quarters. The current ratio, which measures the firm's ability to cover short-term liabilities with current assets, has generally been healthy, ranging from 5.61 to 7.62. This indicates that the company has a strong ability to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has been relatively stable, ranging from 1.21 to 1.69. This suggests that the company has an adequate level of liquid assets to cover its short-term liabilities without relying on selling inventory.
Moreover, the cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, has been consistently low but increasing, ranging from 0.10 to 0.29. While the cash ratio is lower compared to the current and quick ratios, it indicates the company's ability to meet its short-term obligations using cash resources alone has improved over time.
In conclusion, Haynes International Inc. has maintained strong liquidity positions based on the current, quick, and cash ratios. The increasing trend in the cash ratio suggests a strengthening ability to cover short-term liabilities with cash resources, complementing the favorable current and quick ratios.
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 | 307.05 | 317.22 | 313.13 | 325.47 | 324.34 | 326.44 | 320.65 | 306.42 | 297.16 | 278.31 | 276.33 | 276.27 | 270.78 | 274.07 | 264.41 | 258.27 | 239.63 | 233.02 | 237.38 | 247.77 |
The cash conversion cycle of Haynes International Inc. has shown fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle decreased to 331.62 days compared to the previous quarter. This indicates that the company was able to convert its inventory into cash more efficiently during this period.
In Q4 2023, the cash conversion cycle increased to 341.83 days, indicating a longer time taken to convert inventory into cash compared to the previous quarter. This trend continued from Q3 2023, where the cycle was 339.41 days, and Q2 2023, where the cycle reached 353.51 days.
Looking further back, in Q1 2023, the cash conversion cycle was relatively stable at 354.08 days. In Q4 2022 and Q3 2022, the cycle was slightly higher at 358.23 days and 354.60 days, respectively. However, in Q2 2022, the cycle decreased to 339.66 days, showing an improvement in efficiency in converting inventory into cash.
Overall, the trend in the cash conversion cycle of Haynes International Inc. has been somewhat fluctuating over the past eight quarters. It is essential for the company to closely monitor and manage its inventory and accounts receivable turnover to optimize its cash conversion cycle and improve overall liquidity and operational efficiency.