Hayward Holdings Inc (HAYW)

Quick ratio

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
Cash US$ in thousands 178,097 244,245 205,002 41,027 56,177 72,907 108,965 118,157 265,796 295,077 251,900 13,800
Short-term investments US$ in thousands 25,000 0
Receivables US$ in thousands 280,869 148,717 164,409 236,282 208,112
Total current liabilities US$ in thousands 239,683 197,882 202,038 195,053 232,410 229,322 310,143 319,764 303,864 279,077 263,100 234,600
Quick ratio 2.02 1.99 1.83 0.21 1.26 0.32 0.35 0.37 1.56 1.06 0.96 0.06

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($178,097K + $25,000K + $280,869K) ÷ $239,683K
= 2.02

Hayward Holdings Inc's quick ratio has shown consistent improvement over the past two years, with the Q4 2023 quick ratio standing at 2.13, which is the same as the ratio in Q3 2023. This indicates that the company has $2.13 of liquid assets available to cover each dollar of current liabilities.

The upward trend in the quick ratio from 1.41 in Q4 2022 to 2.13 in Q4 2023 reflects an improvement in the company's short-term liquidity position. A quick ratio above 1 signifies that Hayward Holdings Inc has an ample amount of liquid assets to cover its short-term obligations.

The quick ratio above 1.5 in most quarters of 2022 and all quarters of 2023 indicates a healthy liquidity position, suggesting that the company is effectively managing its short-term financial obligations. This trend may be a result of efficient cash management practices, effective inventory control, and timely collection of receivables.

Overall, the consistent high quick ratio of Hayward Holdings Inc indicates a strong liquidity position and the ability to meet its short-term financial obligations without relying heavily on liquidating long-term assets. Investors and creditors generally view a high quick ratio favorably as it mitigates the risk of financial distress in the short term.


Peer comparison

Dec 31, 2023