Heidrick & Struggles International (HSII)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.60 | 1.58 | 1.40 | 1.39 | 1.49 |
| Quick ratio | 1.44 | 1.39 | 1.33 | 1.34 | 1.40 |
| Cash ratio | 1.17 | 1.09 | 1.06 | 1.02 | 1.06 |
Heidrick & Struggles International's liquidity ratios show a relatively stable trend over the years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been consistently above 1, indicating a healthy liquidity position. From 2020 to 2024, the current ratio ranged from 1.39 to 1.60, with the highest value recorded in 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a stable liquidity position for Heidrick & Struggles International. The quick ratio ranged from 1.33 to 1.44 over the same period, indicating the company's ability to meet short-term obligations without relying on inventory.
Furthermore, the cash ratio, which specifically looks at the company's ability to cover current liabilities with its cash and cash equivalents, shows an increasing trend from 2020 to 2024. The cash ratio improved from 1.02 in 2021 to 1.17 in 2024, signaling an enhanced capacity to cover immediate financial obligations with liquid assets.
Overall, Heidrick & Struggles International's liquidity ratios demonstrate a consistent and healthy liquidity position, with the company having sufficient current assets and cash reserves to meet its short-term obligations efficiently.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 35.45 | 38.58 | 58.44 | 62.37 | 68.14 |
The cash conversion cycle of Heidrick & Struggles International has shown a downward trend over the years, indicating an improvement in its efficiency in managing cash flows. The cycle decreased from 68.14 days as of December 31, 2020, to 35.45 days as of December 31, 2024. This implies that the company has been able to generate cash quicker from its operating activities, which is a positive sign for its financial health. A lower cash conversion cycle suggests that the company is managing its working capital more effectively, potentially leading to improved liquidity and profitability. It indicates that Heidrick & Struggles has been able to convert its investments in inventory and accounts receivable into cash at a faster pace, which is essential for sustainable operations and growth.