Hillenbrand Inc (HI)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 199,300 | 242,900 | 232,200 | 446,100 | 302,200 |
| Short-term investments | US$ in thousands | — | — | 1,900 | — | — |
| Receivables | US$ in thousands | 652,800 | 658,900 | 525,600 | 445,400 | 417,600 |
| Total current liabilities | US$ in thousands | 1,189,100 | 1,291,000 | 1,077,800 | 1,035,100 | 852,100 |
| Quick ratio | 0.72 | 0.70 | 0.70 | 0.86 | 0.84 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,300K
+ $—K
+ $652,800K)
÷ $1,189,100K
= 0.72
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that the company has enough liquid assets to cover its current liabilities.
Based on the data provided for Hillenbrand Inc over the past five years, the quick ratio has ranged from 0.70 to 0.86. The trend shows some fluctuation in the quick ratio over the years, with a peak in 2021 at 0.86, indicating a better ability to cover short-term obligations with liquid assets. However, in 2024, the quick ratio decreased to 0.72, suggesting a slight decrease in liquidity compared to the previous year.
While a quick ratio below 1 may raise some concerns regarding the company's ability to meet its short-term obligations with its current liquid assets, it is essential to consider industry benchmarks and the company's specific circumstances before drawing any definitive conclusions. Further analysis of the composition of current assets and liabilities would provide additional insight into Hillenbrand Inc's liquidity position.
Peer comparison
Sep 30, 2024