Hillenbrand Inc (HI)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 242,900 | 232,200 | 446,100 | 302,200 | 399,000 |
| Short-term investments | US$ in thousands | — | 1,900 | — | — | — |
| Receivables | US$ in thousands | 658,900 | 525,600 | 445,400 | 417,600 | 398,500 |
| Total current liabilities | US$ in thousands | 1,291,000 | 1,077,800 | 1,035,100 | 852,100 | 589,300 |
| Quick ratio | 0.70 | 0.70 | 0.86 | 0.84 | 1.35 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($242,900K
+ $—K
+ $658,900K)
÷ $1,291,000K
= 0.70
The quick ratio of Hillenbrand Inc has shown a declining trend over the past five years. As of September 30, 2023, the quick ratio stood at 0.79, down from 0.81 in the previous year and significantly lower than the 2019 figure of 1.44. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. This trend warrants careful monitoring, as a declining quick ratio could signal liquidity challenges or potential difficulties in covering immediate liabilities. Further analysis of the company's cash, accounts receivable, and current liabilities is necessary to understand the underlying factors contributing to this trend.
Peer comparison
Sep 30, 2023