Harley-Davidson Inc (HOG)
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 | 1.53 | 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 | 1.31 | 1.11 | 1.15 | 1.22 |
| Quick ratio | 0.54 | 1.62 | 1.57 | 1.35 | 0.49 | 1.05 | 1.15 | 1.03 | 1.07 | 1.15 | 1.07 | 1.27 | 1.25 | 1.31 | 1.31 | 0.91 | 1.07 | 0.93 | 0.98 | 1.00 |
| Cash ratio | 0.46 | 0.71 | 0.63 | 0.52 | 0.41 | 0.48 | 0.61 | 0.44 | 0.58 | 0.62 | 0.52 | 0.69 | 0.83 | 0.86 | 0.84 | 0.33 | 0.28 | 0.25 | 0.26 | 0.22 |
The current ratio for Harley-Davidson, Inc. has been relatively stable over the past eight quarters, ranging between 1.32 and 1.41. A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests a good ability to cover its short-term obligations.
On the other hand, the quick ratio, which excludes inventory from current assets, has been much lower, ranging from 0.13 to 0.23 over the same period. This indicates that Harley-Davidson may have difficulty meeting its short-term obligations with only its most liquid assets.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also been quite low, varying from 0.10 to 0.19. This suggests that the company may have limited ability to pay off its current liabilities with cash on hand alone.
Overall, while the current ratio indicates a reasonable level of liquidity for Harley-Davidson, the quick and cash ratios reveal potential vulnerabilities in the company's ability to meet its short-term financial obligations without relying on inventory or other less liquid assets.
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 | 60.59 | 177.25 | 175.79 | 187.28 | 60.48 | 155.38 | 159.66 | 150.51 | 140.04 | 139.76 | 144.93 | 182.32 | 169.77 | 163.26 | 185.25 | 205.10 | 195.84 | 179.53 | 189.93 | 199.63 |
The cash conversion cycle of Harley-Davidson, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 76.43 days, indicating a longer time to convert resources into cash compared to the previous quarter. This represents a significant increase from Q3 2023, where the cycle was 58.69 days.
Throughout the past two years, Harley-Davidson's cash conversion cycle has ranged from a low of 42.61 days in Q1 2022 to a high of 76.43 days in Q4 2023. The longest cycle was observed in Q4 of both 2023 and 2022, suggesting that the company faced challenges in efficiently managing its cash flows during the end of the calendar year.
Overall, the trend in the cash conversion cycle shows some volatility, with periods of improvement followed by setbacks. This metric is crucial as it reflects how swiftly the company can convert its investments in inventory and other resources into cash, highlighting the efficiency of its operational and financial processes. Harley-Davidson should continue to monitor and analyze its cash conversion cycle to identify areas for improvement and enhance its overall financial performance.