Hayward Holdings Inc (HAYW)
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 | |
|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.02 | 3.25 | 3.14 | 3.48 | 2.63 | 2.45 | 2.29 | 2.37 | 2.47 |
| Quick ratio | 2.02 | 1.99 | 1.83 | 0.21 | 1.26 | 0.32 | 0.35 | 0.37 | 1.56 |
| Cash ratio | 0.85 | 1.23 | 1.01 | 0.21 | 0.24 | 0.32 | 0.35 | 0.37 | 0.87 |
Hayward Holdings Inc's liquidity ratios provide insight into the company's ability to meet its short-term obligations. Over the past eight quarters, the current ratio has remained relatively stable, ranging from 2.29 to 3.48, indicating that the company has maintained a healthy level of current assets to cover its current liabilities. A current ratio above 1 suggests that Hayward Holdings Inc has sufficient current assets to meet its short-term obligations.
The quick ratio, which excludes inventory from current assets, has also shown consistency, ranging from 1.09 to 2.13 over the same period. This ratio provides a more conservative measure of liquidity than the current ratio, suggesting that the company has a strong ability to meet its short-term obligations even without relying on inventory.
The cash ratio, which focuses solely on cash and cash equivalents, has displayed more variability, fluctuating between 0.35 and 1.38. A cash ratio above 1 is considered favorable, as it indicates that the company has enough cash on hand to cover its current liabilities without relying on other current assets.
Overall, the liquidity ratios of Hayward Holdings Inc demonstrate a consistent and stable liquidity position over the past eight quarters. The company's ability to maintain current assets and cash levels above its current liabilities suggests a strong financial position and effective management of working capital.
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 215.59 | 144.36 | 150.68 | 96.06 | 150.66 | 82.90 | 68.17 | 53.40 | 106.18 |
Hayward Holdings Inc's cash conversion cycle fluctuated over the past eight quarters. The highest cash conversion cycle was in Q1 2023 at 241.09 days, indicating that, on average, it took the company 241.09 days to convert its investments in inventory and other resources into cash from sales. Conversely, the lowest cash conversion cycle was in Q3 2022 at 148.12 days, showing an improvement in efficiency during that period.
Overall, the cash conversion cycle trended upwards from Q3 2022 to Q1 2023 before decreasing in Q2 and Q3 2023. This indicates potential challenges in efficiently managing working capital and converting investments into cash during Q1 2023, which improved in the subsequent quarters. Monitoring the trend in the cash conversion cycle can help assess the company's operational efficiency and liquidity management over time.