Hillenbrand Inc (HI)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,607,600 | 1,402,900 | 1,434,500 | 1,369,700 | 1,023,200 |
| Total current liabilities | US$ in thousands | 1,291,000 | 1,077,800 | 1,035,100 | 852,100 | 589,300 |
| Current ratio | 1.25 | 1.30 | 1.39 | 1.61 | 1.74 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,607,600K ÷ $1,291,000K
= 1.25
The current ratio of Hillenbrand Inc has displayed a declining trend over the last five years. As of September 30, 2023, the current ratio stands at 1.25 compared to 1.30 in 2022, 1.39 in 2021, 1.61 in 2020, and 1.74 in 2019.
The current ratio measures the company's ability to meet its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a good sign.
The declining trend in Hillenbrand's current ratio over the years may indicate a potential weakening of its short-term liquidity position. It may have implications for the company's ability to cover its short-term obligations, such as paying off short-term debt and meeting its current operational expenses.
Further analysis of the components of current assets and liabilities could provide additional insights into the reasons behind the declining trend. For instance, a decrease in current assets or an increase in current liabilities could contribute to the declining current ratio.
Investors and creditors may view this trend cautiously, as a declining current ratio could indicate potential financial challenges in the short term. It would be prudent for stakeholders to monitor the trend closely and assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Sep 30, 2023