Helix Energy Solutions Group Inc (HLX)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 2.33 1.56 1.55 1.90 1.88
Quick ratio 1.21 0.74 0.63 0.91 1.04
Cash ratio 1.21 0.74 0.63 0.91 1.04

Based on the data provided, Helix Energy Solutions Group Inc's liquidity ratios have shown some fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally been above 1, indicating that the company has had more than enough current assets to cover its current liabilities.

The current ratio has increased from 1.88 in 2020 to 2.33 in 2024, showing an improvement in the company's liquidity position over the years. This indicates that Helix Energy Solutions Group Inc has been managing its current assets and liabilities effectively, which is a positive sign for its financial health.

On the other hand, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has fluctuated more significantly compared to the current ratio. The quick ratio has decreased from 1.04 in 2020 to 0.63 in 2022 before increasing to 1.21 in 2024. This fluctuation suggests that the company's ability to meet its short-term obligations without relying on inventory has varied over the years.

Lastly, the cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has followed a similar trend to the quick ratio. It has declined from 1.04 in 2020 to 0.63 in 2022 before rising to 1.21 in 2024.

Overall, while the current ratio indicates that Helix Energy Solutions Group Inc has maintained a healthy liquidity position over the years, the fluctuations in the quick ratio and cash ratio suggest that the company's liquidity management may have faced some challenges during certain periods. Further analysis would be needed to understand the reasons behind these fluctuations and to assess the overall effectiveness of the company's liquidity management strategies.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 0.00 0.00 1.11 40.75 0.00

The cash conversion cycle of Helix Energy Solutions Group Inc has fluctuated over the years based on the data provided. In 2020 and 2023, the company had a cash conversion cycle of 0.00 days, indicating that it effectively managed its working capital to quickly convert its investments in inventory and receivables into cash.

However, there was a significant increase in the cash conversion cycle in 2021 to 40.75 days, suggesting a potential delay in converting inventory and receivables into cash during that period. This could be attributed to various factors such as slower sales, inventory management issues, or delays in collecting receivables.

In 2022, the cash conversion cycle improved to 1.11 days, indicating a more efficient management of working capital compared to the previous year. The company was able to reduce the time taken to convert its investments into cash.

Overall, the company's cash conversion cycle has shown variability over the years, with improvements seen in certain periods. It is important for Helix Energy Solutions Group Inc to monitor and manage its working capital effectively to ensure optimal liquidity and operational efficiency.