Harley-Davidson Inc (HOG)

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 1.40 1.41 1.50 1.54 1.53 2.03 2.03 1.72 1.34 1.36 1.44 1.34 1.36 1.37 1.30 1.50 1.47 1.46 1.46 1.09
Quick ratio 0.45 0.54 0.53 0.46 0.48 0.70 0.62 0.51 0.41 0.55 0.66 0.43 0.56 0.60 0.50 0.67 0.82 0.84 0.83 0.32
Cash ratio 0.45 0.54 0.53 0.46 0.48 0.70 0.62 0.51 0.41 0.55 0.66 0.43 0.56 0.60 0.50 0.67 0.82 0.84 0.83 0.32

Harley-Davidson Inc's liquidity ratios have shown some fluctuations over the past years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating that the company has been able to meet its short-term obligations. The current ratio has seen some variability, with a peak of 2.03 on June 30, 2023, and a low of 1.09 on March 31, 2020.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has generally been lower than the current ratio, indicating a more conservative assessment of the company's ability to meet its short-term obligations. The quick ratio has ranged from a low of 0.32 on March 31, 2020, to a high of 0.70 on September 30, 2023.

The cash ratio, which is the most stringent liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, has followed a similar trend to the quick ratio. The cash ratio has varied between 0.32 on March 31, 2020, and 0.70 on September 30, 2023.

Overall, while the current ratio has generally been above 1, indicating a healthy liquidity position, the quick ratio and cash ratio have been lower, suggesting that the company may have some reliance on inventory to meet its short-term obligations. It is important for the company to closely monitor its liquidity ratios to ensure it can efficiently manage its short-term financial commitments.

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 80.59 67.95 60.62 74.88 91.86 78.87 87.16 81.19 93.11 65.25 71.80 69.66 71.79 51.09 51.63 58.13 63.06 35.77 46.34 59.76

The cash conversion cycle of Harley-Davidson Inc has shown fluctuations over the analyzed period, ranging from a low of 35.77 days to a high of 93.11 days. The cycle represents the time it takes for the company to convert its investments in inventory into cash from sales, then back into cash by paying its accounts payable. A shorter cash conversion cycle is generally favorable as it indicates that the company is efficiently managing its working capital.

Harley-Davidson Inc's cash conversion cycle has generally been in the range of 50 to 70 days, with occasional spikes or dips outside this range. Shorter cycles, such as those observed in September 2020 and June 2024, indicate improved efficiency in managing inventory and collecting receivables. On the other hand, longer cycles, like the one in December 2022, suggest potential challenges in converting inventory into sales and then into cash.

Overall, monitoring the cash conversion cycle can provide insights into the company's liquidity, operational efficiency, and working capital management. Harley-Davidson Inc may benefit from further analysis to identify trends and potential areas for improvement in optimizing its cash conversion cycle.