Hayward Holdings Inc (HAYW)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Current ratio	2.45	2.62	2.59	3.37	3.02	3.25	3.14	3.48	2.63	2.45	2.29	2.37	2.47	2.47	2.38	2.34	1.94	—	—	—
Quick ratio	0.63	1.10	0.93	0.54	0.85	1.23	1.01	0.21	0.24	0.32	0.35	0.37	0.87	1.06	0.96	0.06	0.53	—	—	—
Cash ratio	0.63	1.10	0.93	0.54	0.85	1.23	1.01	0.21	0.24	0.32	0.35	0.37	0.87	1.06	0.96	0.06	0.53	—	—	—

Hayward Holdings Inc's liquidity ratios indicate a strong ability to meet short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has consistently improved over the years, reaching 2.45 as of September 30, 2022, and 2.63 as of December 31, 2022. This suggests that Hayward Holdings has a comfortable buffer of current assets to meet its short-term financial obligations.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a generally positive trend. Although there were fluctuations, with a decline to 0.24 as of December 31, 2022, the ratio rebounded to 1.23 as of September 30, 2023. This indicates that the company has a higher capability to meet its short-term liabilities using only its most liquid assets.

The cash ratio, which is the strictest measure of liquidity as it considers only cash and equivalents, also demonstrates an improving trend over the years. The company's ability to cover its current liabilities with cash and equivalents peaked at 1.23 as of September 30, 2023.

Overall, Hayward Holdings Inc's liquidity ratios suggest a solid financial position with adequate liquidity to meet its short-term obligations. The increasing trend in these ratios reflects the company's effective management of its current assets to ensure liquidity and financial stability.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash conversion cycle	days	147.77	159.60	148.49	153.33	150.15	154.36	156.68	164.55	144.38	151.58	141.62	120.21	114.21	108.61	98.79	104.23	110.88	0.00	0.00	0.00

The cash conversion cycle of Hayward Holdings Inc has shown fluctuations over the years. From March 31, 2020, to June 30, 2020, the company's cash conversion cycle remained stable at 0 days. However, starting from December 31, 2020, the cash conversion cycle began to increase significantly, reaching a peak of 164.55 days on March 31, 2023. This extended cash conversion cycle indicates that the company takes longer to convert its investments in inventory into cash receipts from sales.

Thereafter, the cash conversion cycle gradually decreased, showing signs of improvement in the company's operational efficiency. As of December 31, 2024, the cash conversion cycle stood at 147.77 days. While there was a reduction compared to the peak in 2023, the company still needs to focus on managing its working capital effectively to further optimize this cycle.

Overall, the trend in Hayward Holdings Inc's cash conversion cycle demonstrates the importance of monitoring liquidity and efficiency in managing its cash flows and working capital to sustain and enhance its financial performance.