Warrior Met Coal Inc (HCC)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.24 | 7.67 | 9.79 | 9.74 | 7.66 | 7.01 | 7.71 | 5.39 | 5.14 | 3.57 | 3.46 | 2.96 | 2.74 | 3.60 | 3.96 | 4.25 | 3.44 | 3.08 | 3.31 | 3.84 |
| Quick ratio | 5.81 | 6.70 | 8.41 | 8.46 | 6.49 | 5.95 | 6.56 | 4.52 | 4.38 | 2.61 | 2.61 | 1.90 | 1.81 | 2.20 | 2.52 | 3.17 | 2.50 | 2.35 | 2.52 | 3.10 |
| Cash ratio | 5.06 | 4.83 | 6.74 | 6.82 | 5.47 | 4.63 | 4.52 | 2.84 | 3.31 | 2.06 | 2.11 | 1.43 | 1.29 | 1.61 | 1.75 | 2.00 | 1.61 | 1.55 | 1.10 | 1.42 |
Warrior Met Coal Inc's liquidity ratios indicate a strong ability to meet its short-term obligations with its current assets. The current ratio has shown a consistent upward trend over the past quarters, reaching a high of 9.79 in Q2 2023, suggesting the company has more than enough current assets to cover its current liabilities. The quick ratio, which does not include inventory in its calculation, also shows a healthy liquidity position, with values consistently above 4. A particularly notable improvement was seen in the cash ratio, which increased to 7.01 in Q2 2023 from 4.69 in Q2 2022, indicating a greater reliance on cash to cover short-term liabilities. Overall, Warrior Met Coal Inc's liquidity ratios reflect a strong financial position and ability to handle short-term financial obligations comfortably.
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 70.79 | 80.53 | 82.20 | 75.25 | 77.39 | 80.43 | 111.59 | 105.55 | 58.88 | 58.95 | 71.58 | 70.07 | 70.01 | 93.15 | 89.33 | 77.12 | 53.79 | 46.45 | 61.52 | 71.86 |
The cash conversion cycle of Warrior Met Coal Inc has shown some fluctuations in recent quarters. In the most recent quarter, Q4 2023, the company's cash conversion cycle was 80.93 days, indicating an improvement from the previous quarter. However, it is still higher compared to the Q1 and Q2 of 2023.
Overall, the company has been working on managing its cash conversion cycle more efficiently compared to earlier periods, as seen by the decreasing trend in the latter part of 2022. The peak in Q2 2022, with 122.91 days, suggests there might have been some challenges in managing working capital during that time.
A lower cash conversion cycle generally implies that the company is able to convert its inventory and receivables into cash more quickly, which is a positive sign of efficient operations. Warrior Met Coal Inc should continue monitoring and managing its cash conversion cycle to ensure it remains at an optimal level to support its liquidity and overall financial health.