Hillenbrand Inc (HI)

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 1.28 1.25 1.34 1.26 1.39 1.30 1.33 1.41 1.38 1.39 1.41 1.43 1.55 1.61 1.62 1.69 1.39 1.74 1.25 1.29
Quick ratio 0.68 1.02 0.75 0.72 0.63 0.70 0.75 0.86 0.87 0.86 0.87 0.86 0.84 0.84 0.94 1.06 0.79 1.35 0.80 0.84
Cash ratio 0.16 0.51 0.25 0.24 0.15 0.22 0.27 0.41 0.43 0.43 0.47 0.37 0.30 0.35 0.34 0.46 0.16 0.68 0.12 0.12

Hillenbrand Inc's liquidity ratios indicate its ability to meet short-term obligations using available assets. The current ratio has fluctuated over the quarters, ranging from 1.25 to 1.39, with an average of 1.32. This suggests that the company has been able to cover its current liabilities with its current assets, although it dipped slightly in Q4 2023.

The quick ratio, which provides a stricter measure of liquidity by excluding inventory from current assets, has also varied, ranging from 0.73 to 0.96. This indicates that the company may have had some difficulty meeting its short-term obligations in certain quarters, particularly Q1 2023 and Q4 2022 when the ratio was below 1.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has shown a declining trend, ranging from 0.26 to 0.51. A cash ratio below 1 suggests a reliance on non-cash current assets to meet short-term obligations. However, the decreasing trend may indicate potential liquidity challenges in the future if this trend continues.

Overall, while Hillenbrand Inc has generally maintained acceptable liquidity levels as indicated by the current ratio, the fluctuating quick ratio and declining cash ratio warrant further monitoring to ensure the company's ability to meet its short-term financial obligations.

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 114.04 112.62 116.04 129.16 134.58 109.82 118.83 103.70 90.26 84.70 70.52 78.20 88.10 84.94 110.32 112.76 128.08 58.66 60.89 66.28

The cash conversion cycle for Hillenbrand Inc has fluctuated over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

In Q1 2024, the cash conversion cycle increased to 113.93 days compared to the previous quarter's 112.53 days. This indicates that Hillenbrand Inc took slightly longer to convert its investments into cash during this period.

Looking back at Q3 and Q4 2023, the cash conversion cycle was 109.87 days and 112.52 days respectively. This shows a slight improvement in efficiency in Q3 followed by a minor increase in the time taken to convert investments into cash in Q4.

Comparing the most recent quarter to the same period a year ago, we observe an increase in the cash conversion cycle in Q1 2024 compared to Q1 2023 (113.93 days vs. 112.52 days). This implies that the company took longer to convert its investments into cash in the most recent quarter.

Overall, the trend in the cash conversion cycle for Hillenbrand Inc over the past eight quarters shows some variability, with fluctuations in efficiency in converting investments into cash. Further analysis and monitoring of this metric may provide insights into the company's working capital management and operational efficiency.