Hims Hers Health Inc (HIMS)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.14 | 2.68 | 2.80 | 3.00 | 3.03 | 3.53 | 4.01 | 4.52 | 3.49 | 4.14 | 4.78 | 3.41 | 5.22 | 12.30 | 17.29 | 7.43 | 0.44 | 1.26 | 1.37 | 1.69 |
| Quick ratio | 1.66 | 2.09 | 2.18 | 2.57 | 2.57 | 2.90 | 3.28 | 3.83 | 2.97 | 3.51 | 4.19 | 3.17 | 4.81 | 11.60 | 16.43 | 6.65 | 19.88 | 1.19 | 1.27 | 40.07 |
| Cash ratio | 1.66 | 2.09 | 2.18 | 2.50 | 2.57 | 2.90 | 3.28 | 3.75 | 2.97 | 3.51 | 4.19 | 3.12 | 4.81 | 11.60 | 16.43 | 6.58 | 19.88 | 1.19 | 1.27 | 40.07 |
The liquidity ratios of Hims Hers Health Inc reflect a stable and healthy financial position over the recent quarters.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a consistent improvement from 2.14 in September 2024 to 4.78 in June 2022, indicating a strengthening liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed a positive trend, increasing from 1.66 in September 2024 to 4.19 in June 2022. This suggests that the company has a solid ability to meet its short-term obligations without relying on inventory.
The cash ratio, which focuses solely on the company's ability to cover current liabilities with cash and cash equivalents, has been relatively stable and robust, ranging from 1.66 to 40.07 over the observation period. This indicates that Hims Hers Health Inc maintains a significant amount of cash to meet its immediate financial obligations.
Overall, the liquidity ratios of Hims Hers Health Inc demonstrate a strong financial position with ample resources to cover its short-term obligations, indicating good financial health and efficient management of working capital.
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -41.02 | -31.71 | -30.48 | -45.09 | -48.90 | -43.82 | -47.86 | -30.65 | -36.61 | -28.55 | -52.44 | -27.44 | -35.16 | -72.62 | -75.82 | -39.30 | 59.99 | 111.02 | 220.90 |
The cash conversion cycle of Hims Hers Health Inc has fluctuated over the periods analyzed. A negative cash conversion cycle indicates that the company is efficiently managing its working capital.
From the data provided, we observe that the company has generally maintained negative cash conversion cycles, which means it is able to convert its investments in raw materials and production into cash quickly. The most recent recorded cash conversion cycle of -41.02 days indicates that the company is able to fund its operations primarily through its operating cycle without relying heavily on external financing.
However, it is important to note that the cash conversion cycle showed a significant increase in the second half of 2022 and the first half of 2023, reaching its peak at 220.90 days in September 2020. This indicates that the company faced challenges in efficiently managing its working capital during those periods, which could have been due to issues such as slow collections from customers or inefficient inventory management.
Overall, the trend of negative cash conversion cycles in recent periods is positive for Hims Hers Health Inc, as it indicates the company's ability to effectively manage its working capital and convert its investments into cash efficiently.