Warrior Met Coal Inc (HCC)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.20 | 5.81 | 6.37 | 6.86 | 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 |
| Quick ratio | 3.80 | 4.45 | 5.17 | 5.62 | 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 |
| Cash ratio | 2.97 | 3.54 | 4.12 | 4.31 | 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 |
Warrior Met Coal Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its short-term assets, has generally been above 2, indicating a strong liquidity position. However, the ratio has been gradually increasing from 2020 to 2024, reaching a peak of 9.79 as of June 30, 2023. This suggests that the company has been improving its ability to meet its current liabilities with current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a strong liquidity position for Warrior Met Coal Inc. The ratio has generally been above 1, indicating that the company can cover its short-term obligations without relying on selling inventory. Similar to the current ratio, the quick ratio has been on an upward trend, peaking at 8.46 as of March 31, 2023.
Lastly, the cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities, also shows an improving trend for Warrior Met Coal Inc. The ratio has been steadily increasing from 2020 to 2023, indicating a strengthening ability to meet short-term obligations with its cash holdings.
Overall, Warrior Met Coal Inc's liquidity ratios demonstrate a healthy liquidity position, with improving trends over the years. This suggests that the company has been effectively managing its short-term obligations and maintaining a strong financial position in terms of liquidity.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 81.88 | 77.97 | 70.52 | 82.62 | 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 |
Warrior Met Coal Inc's cash conversion cycle has shown fluctuations over the past five years, ranging from a low of 58.88 days to a high of 111.59 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, reflecting the efficiency of the company's working capital management.
The company experienced a significant increase in its cash conversion cycle in the second quarter of 2022, reaching its highest level of 111.59 days. This could indicate potential issues with inventory management or slower collection of accounts receivable during that period. However, the cash conversion cycle improved in subsequent quarters, stabilizing around the 70-80 days range towards the end of the period analyzed.
Overall, Warrior Met Coal Inc's cash conversion cycle has shown a tendency towards optimization and efficiency, with a focus on managing working capital effectively. Monitoring and managing the cash conversion cycle is essential for the company to ensure healthy cash flow operations and maximize its financial performance.