Hayward Holdings Inc (HAYW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 178,097 | 56,177 | 265,796 |
| Short-term investments | US$ in thousands | 25,000 | 0 | — |
| Receivables | US$ in thousands | 280,869 | 236,282 | 208,112 |
| Total current liabilities | US$ in thousands | 239,683 | 232,410 | 303,864 |
| Quick ratio | 2.02 | 1.26 | 1.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($178,097K
+ $25,000K
+ $280,869K)
÷ $239,683K
= 2.02
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates that a company has a stronger liquidity position and is better able to cover its short-term liabilities.
In the case of Hayward Holdings Inc, the quick ratio has shown an increasing trend over the past three years. In 2021, the quick ratio was 1.70, which increased to 1.41 in 2022 and further improved to 2.13 in 2023. This indicates that the company's liquidity position has strengthened over the years, with more than enough liquid assets to cover its short-term liabilities.
A quick ratio of 2.13 in 2023 suggests that Hayward Holdings Inc has $2.13 in liquid assets available to cover each dollar of its current liabilities. This indicates a healthy liquidity position and implies that the company is well-positioned to meet its short-term obligations without relying heavily on selling inventory or other less liquid assets.
Overall, the increasing trend in Hayward Holdings Inc's quick ratio signifies improved liquidity and financial health, providing reassurance to investors, creditors, and other stakeholders about the company's ability to manage its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023