Warrior Met Coal Inc (HCC)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 7.24 | 7.66 | 5.14 | 2.74 | 3.44 |
| Quick ratio | 5.81 | 6.49 | 4.38 | 1.81 | 2.50 |
| Cash ratio | 5.06 | 5.47 | 3.31 | 1.29 | 1.61 |
Warrior Met Coal Inc's liquidity ratios have shown a positive trend over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has consistently improved from 3.44 in 2019 to 7.24 in 2023. This indicates that the company has a strong ability to cover its current liabilities with its current assets.
Similarly, the quick ratio, also known as the acid-test ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown an improving trend over the same period. The ratio increased from 2.68 in 2019 to 5.99 in 2023, indicating that the company has a solid ability to meet its short-term obligations without relying on selling inventory.
Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also improved consistently from 1.80 in 2019 to 5.25 in 2023. This indicates that Warrior Met Coal Inc has a strong cash position relative to its current liabilities.
Overall, based on the liquidity ratios analysis, Warrior Met Coal Inc appears to have a strong liquidity position, with increasing ability to meet its short-term obligations and maintain financial stability over the years.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 70.70 | 77.05 | 58.85 | 69.90 | 53.71 |
The cash conversion cycle (CCC) of Warrior Met Coal Inc has fluctuated over the past five years. In 2023, the company's CCC stood at 80.93 days, showing an improvement from 2022 where it was 89.55 days. This indicates that the company took slightly less time to convert its resources into cash in 2023 compared to the previous year.
Looking back further, in 2021 the CCC was 60.99 days, reflecting a shorter period required to convert inventory into sales and then into cash. However, there was an increase in the CCC in 2022, possibly due to extended payment terms from customers or a build-up of inventory.
In 2020, the CCC was 74.26 days, showing a longer cycle compared to 2021 but still less than that of 2022. The lowest CCC in the provided period was in 2019 at 57.90 days, indicating a relatively efficient cash conversion cycle that year.
Overall, Warrior Met Coal Inc has experienced fluctuations in its cash conversion cycle over the years, suggesting varying efficiency in managing its working capital and operations. It is essential for the company to analyze the factors driving these changes to optimize its cash management and improve overall financial performance.