Hillenbrand Inc (HI)

Liquidity ratios

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 Dec 31, 2019
Current ratio 1.27 1.35 1.34 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
Quick ratio 0.72 0.75 0.74 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
Cash ratio 0.17 0.18 0.19 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

Hillenbrand Inc's liquidity ratios reflect the company's ability to meet its short-term obligations and manage its current assets effectively.

The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been relatively stable over the past few quarters, ranging from 1.25 to 1.41. A current ratio above 1 indicates that the company has more current assets than current liabilities, with the most recent ratio standing at 1.27 as of September 30, 2024.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Hillenbrand Inc's quick ratio has fluctuated, ranging from 0.63 to 1.06 over the past few quarters. The quick ratio as of September 30, 2024, was 0.72, indicating that the company may have some difficulty meeting its short-term obligations without relying on selling inventory.

The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown variations over the quarters, ranging from 0.15 to 0.51. The cash ratio as of September 30, 2024, was 0.17, suggesting that Hillenbrand Inc may have a limited ability to cover its short-term obligations with just its cash reserves.

Overall, the current ratio indicates that Hillenbrand Inc generally has enough current assets to cover its current liabilities, while the quick and cash ratios suggest the company may need to manage its liquidity more effectively, especially in terms of its ability to quickly meet short-term obligations without relying on inventory or other assets.

Additional liquidity measure

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 Dec 31, 2019
Cash conversion cycle days 88.66 102.66 106.11 114.04 112.62 116.04 129.16 134.58 109.82 118.83 103.70 90.26 84.70 70.52 78.20 88.10 84.94 110.32 112.76 128.08

The cash conversion cycle of Hillenbrand Inc has been fluctuating over the past few quarters. It is calculated as the sum of Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payable Outstanding (DPO). A shorter cash conversion cycle indicates that a company is able to collect cash quickly from its sales and convert inventory into sales efficiently.

In the recent quarters, Hillenbrand Inc's cash conversion cycle has ranged from 70.52 to 134.58 days, with the latest figure standing at 88.66 days as of September 30, 2024. This suggests that the company is able to manage its working capital effectively, although there may be room for improvement.

The trend over the past few quarters indicates that the cash conversion cycle peaked in March 2023 at 129.16 days and has since been fluctuating, showing some variability in the company's ability to efficiently manage its cash, inventory, and payables.

Overall, while the cash conversion cycle for Hillenbrand Inc has shown some volatility, it is important for the company to continue monitoring and optimizing this metric to ensure efficient cash flow management and working capital utilization.