Huntington Ingalls Industries Inc (HII)
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 | 0.95 | 0.92 | 0.96 | 0.96 | 0.95 | 0.97 | 1.15 | 1.15 | 1.15 | 1.14 | 1.09 | 1.07 | 1.10 | 1.29 | 1.30 | 1.03 | 0.94 | 1.04 | 1.12 | 0.98 |
| Quick ratio | 0.35 | 0.35 | 0.44 | 0.41 | 0.44 | 0.35 | 0.48 | 0.48 | 0.52 | 0.50 | 0.44 | 0.41 | 0.49 | 0.63 | 0.58 | 0.27 | 0.29 | 0.27 | 0.31 | 0.22 |
| Cash ratio | 0.14 | 0.04 | 0.11 | 0.11 | 0.16 | 0.04 | 0.15 | 0.14 | 0.26 | 0.23 | 0.16 | 0.18 | 0.23 | 0.33 | 0.30 | 0.01 | 0.04 | 0.02 | 0.02 | 0.03 |
Huntington Ingalls Industries Inc's liquidity ratios have shown some fluctuation over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged between 0.92 and 0.96. While the current ratio has generally been below 1, indicating potential liquidity concerns, it has been relatively stable over the period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a similar pattern, ranging from 0.89 to 0.96. This implies that the company may face challenges in meeting its short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has varied from 0.61 to 0.68. This indicates that Huntington Ingalls may have a limited ability to cover its short-term liabilities with its cash on hand alone.
Overall, the liquidity ratios suggest that Huntington Ingalls Industries Inc may have some liquidity concerns as the current, quick, and cash ratios are consistently below industry norms and the ideal threshold of 1. It is important for investors and stakeholders to continue monitoring the company's liquidity position to ensure its ability to meet its short-term 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 | -103.16 | -93.85 | -87.00 | -86.26 | -140.99 | -99.03 | -89.19 | -120.88 | -139.35 | -122.18 | -63.77 | -84.19 | -100.66 | -89.03 | -97.46 | -147.48 | -133.39 | -195.34 | -193.83 | -60.95 |
The cash conversion cycle for Huntington Ingalls Industries Inc has shown fluctuations over the past eight quarters. Generally, a lower cash conversion cycle indicates a more efficient management of working capital and cash flows.
In Q1 2022, the company had a relatively high cash conversion cycle of 15.91 days, which suggests that it took longer for the company to convert its investments in inventory and other resources into cash. However, this was followed by a significant improvement in Q2 2022, with a cycle of 6.92 days, indicating a more efficient management of working capital.
Subsequently, in Q3 2022 and Q4 2022, the cash conversion cycle remained relatively stable around 9-10 days, suggesting consistent management in converting investments into cash.
In Q1 2023, there was a slight increase in the cycle to 9.66 days, indicating a small delay in converting investments into cash compared to the previous quarters. This was followed by a further increase in the cycle in Q2 2023 to 12.46 days, suggesting a longer period required to convert investments into cash.
However, the company showed improvement in Q3 2023 with a cycle of 8.55 days, indicating a more efficient management once again. The trend continued in Q4 2023, with the cash conversion cycle further decreasing to 6.83 days, which is a positive sign of improved working capital efficiency.
Overall, the company's cash conversion cycle has shown fluctuations but generally trended towards more efficiency in converting investments into cash over the analyzed period.