Harmonic Inc (HLIT)

Liquidity ratios

Dec 31, 2024 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 2.18 2.08 1.87 1.09 1.21 1.20 1.15 1.11 1.08 1.52 1.52 1.41 1.44 1.43 1.62 1.35 1.62 1.47 1.43 1.18
Quick ratio 0.61 0.36 0.32 0.31 0.31 0.30 0.25 0.30 0.28 0.47 0.55 0.44 0.59 0.63 0.62 0.52 0.67 0.49 0.53 0.36
Cash ratio 0.61 0.36 0.32 0.31 0.31 0.30 0.25 0.30 0.28 0.47 0.55 0.44 0.59 0.63 0.62 0.52 0.67 0.49 0.53 0.36

Harmonic Inc's current ratio has shown some fluctuations over the past few years, starting at a relatively low level of 1.18 in March 2020, gradually increasing to peak at 2.18 by December 2024. This indicates an improvement in the company's ability to cover its short-term liabilities with its current assets.

On the other hand, the quick ratio, which excludes inventory from current assets, was relatively lower compared to the current ratio. The quick ratio ranged from 0.25 to 0.67 during the same period. This suggests that the company may have had some difficulties meeting its immediate obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity as it looks solely at cash and near-cash assets, also showed a similar trend to the quick ratio. It ranged from 0.25 to 0.67, indicating that Harmonic Inc may have had limited ability to pay off its short-term debts with its cash and cash equivalents alone.

Overall, while Harmonic Inc's liquidity ratios show some improvement over the years, there may be room for the company to strengthen its cash position to enhance its ability to meet short-term obligations effectively.

Additional liquidity measure

Dec 31, 2024 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 73.21 86.99 107.97 110.20 102.70 131.13 138.02 157.84 142.83 117.23 103.53 110.92 105.03 82.47 72.95 65.32 69.55 72.86 65.61 69.41

The cash conversion cycle is a key metric that reflects how efficiently a company manages its working capital. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing Harmonic Inc's cash conversion cycle data from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for the company to complete a full cash cycle.

Initially, the company's cash conversion cycle was around 70 days, indicating a moderate period for conversion. However, as we progress through the years, we notice variations in the cycle, reaching a peak of 157.84 days on March 31, 2023, which could imply cash flow challenges or inefficiencies in managing working capital during that period.

The trend starts to reverse from that point onwards, with the cash conversion cycle decreasing consistently. By December 31, 2024, the cycle has improved significantly to 73.21 days, showing a more efficient management of working capital compared to the peak in 2023.

Overall, monitoring the cash conversion cycle is crucial for assessing a company's liquidity and operational efficiency. The fluctuations seen in Harmonic Inc's cycle indicate changes in how effectively the company is managing its cash flow and working capital over time.