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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 178,097 | 244,245 | 205,002 | 41,027 | 56,177 | 72,907 | 108,965 | 118,157 | 265,796 |
| 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 |
| Quick ratio | 2.02 | 1.99 | 1.83 | 0.21 | 1.26 | 0.32 | 0.35 | 0.37 | 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
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