Hillenbrand Inc (HI)

Hillenbrand Inc's liquidity ratios have shown some variations over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been declining from 1.61 in 2020 to 1.27 in 2024. This indicates a decrease in the company's short-term liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a decreasing trend over the same period, dropping from 0.84 in 2020 to 0.72 in 2024. This suggests that the company may have difficulties meeting its short-term obligations without relying on inventory.

The cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated over the years but has generally decreased from 0.35 in 2020 to 0.17 in 2024. This indicates a potential decrease in the company's ability to meet its short-term obligations with its readily available cash resources.

Overall, the liquidity ratios of Hillenbrand Inc appear to be gradually weakening over the years, which may signal a potential liquidity risk for the company. It is important for stakeholders to monitor these ratios closely to ensure the company's ability to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of Hillenbrand Inc has fluctuated over the past five years. In 2024, the company's cash conversion cycle decreased to 88.66 days compared to the previous year, indicating an improvement in its efficiency in converting its inventory and accounts receivable into cash. However, in 2023 and 2022, the cash conversion cycle was higher at 112.53 days and 109.82 days respectively, suggesting a slower conversion of resources into cash during those years.

In 2021 and 2020, the cash conversion cycle remained relatively consistent at 84.70 days and 84.94 days respectively. This stability may indicate that Hillenbrand Inc maintained a steady pace in converting its resources into cash during those years.

Overall, Hillenbrand Inc's cash conversion cycle shows fluctuations over the years, with noticeable improvements in 2024 compared to 2023 and 2022. However, the company should continue to monitor and optimize its cash conversion cycle to ensure efficient utilization of its resources and improve its cash flow management.