Helix Energy Solutions Group Inc (HLX)
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 | 1.56 | 1.42 | 1.34 | 1.56 | 1.55 | 1.44 | 2.09 | 1.96 | 1.90 | 1.97 | 1.89 | 2.24 | 1.88 | 1.89 | 1.67 | 1.54 | 1.54 | 1.64 | 1.47 | 1.81 |
| Quick ratio | 1.37 | 1.22 | 1.14 | 1.34 | 1.34 | 1.27 | 1.91 | 1.56 | 1.53 | 1.56 | 1.44 | 1.68 | 1.62 | 1.61 | 1.30 | 1.16 | 1.00 | 1.25 | 1.10 | 1.40 |
| Cash ratio | 0.74 | 0.43 | 0.48 | 0.58 | 0.63 | 0.49 | 1.12 | 0.89 | 0.91 | 0.92 | 0.89 | 0.94 | 1.04 | 0.94 | 0.62 | 0.57 | 0.73 | 0.92 | 0.79 | 0.88 |
The liquidity ratios of Helix Energy Solutions Group Inc, including the current ratio, quick ratio, and cash ratio, have been fluctuating over the quarters as shown in the table.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has been relatively healthy, averaging around 1.50 over the last eight quarters. This indicates that the company has generally had enough current assets to cover its current liabilities.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has also been stable around 1.50 over the past quarters, indicating that the company has a sufficient level of highly liquid assets to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents as current assets, has been more variable compared to the current and quick ratios. The company's cash ratio has fluctuated between 0.63 and 0.93 over the periods, with a general downward trend in recent quarters. This suggests that the company may have had less cash on hand relative to its current liabilities in the most recent quarters.
Overall, while the company's current and quick ratios have generally been at acceptable levels, indicating a reasonable ability to meet short-term obligations, the downward trend in the cash ratio warrants closer monitoring of the company's cash position to ensure liquidity needs are adequately met in the future.
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 | 34.28 | 41.52 | 28.81 | 27.63 | 30.04 | 61.13 | 49.24 | 81.31 | 85.61 | 103.79 | 83.03 | 88.88 | 52.68 | 54.55 | 76.54 | 56.57 | 27.85 | 4.68 | 7.04 | 25.22 |
The cash conversion cycle of Helix Energy Solutions Group Inc has fluctuated over the past eight quarters, indicating varying efficiency in managing its working capital.
In Q4 2023, the company's cash conversion cycle was 34.28 days, showing an improvement from the previous quarter. This suggests that Helix Energy Solutions Group Inc was able to convert its investments in inventory and accounts receivable into cash more quickly during this period.
Compared to Q3 2023, where the cash conversion cycle was 41.52 days, the company made significant progress in managing its working capital more efficiently. The reduction in the cash conversion cycle implies better liquidity and operational efficiency.
Q2 2023 saw a further improvement in the cash conversion cycle to 28.81 days, indicating that Helix Energy Solutions Group Inc continued to streamline its working capital management strategies. This shortening of the cash conversion cycle suggests that the company was more effective in converting its resources into cash during this period.
Q1 2023 also showed a relatively low cash conversion cycle of 26.60 days, which indicates that Helix Energy Solutions Group Inc had a tight grip on its working capital management and cash flow operations during this quarter.
Looking at the performance of the company in Q4 2022, the cash conversion cycle was 28.92 days, presenting a similar efficiency level to Q1 2023. However, the cash conversion cycle significantly increased in Q3 2022 to 59.90 days, indicating potential challenges in managing working capital efficiently during that quarter.
Further, in Q2 2022 and Q1 2022, the cash conversion cycles were 47.91 days and 42.16 days, respectively. These higher values suggest that Helix Energy Solutions Group Inc took longer to convert its investments in working capital into cash during those periods, indicating possible inefficiencies in managing its liquidity and operational processes.
Overall, the fluctuation in the cash conversion cycle of Helix Energy Solutions Group Inc over the past eight quarters points to the company's ongoing efforts to optimize its working capital management practices and enhance its operational efficiency.