Heidrick & Struggles International (HSII)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 412,618 | 355,447 | 545,225 | 316,473 | 271,719 |
| Short-term investments | US$ in thousands | 65,538 | 266,169 | 0 | 19,999 | 61,153 |
| Total current liabilities | US$ in thousands | 438,691 | 588,477 | 534,694 | 318,238 | 345,342 |
| Cash ratio | 1.09 | 1.06 | 1.02 | 1.06 | 0.96 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($412,618K
+ $65,538K)
÷ $438,691K
= 1.09
The cash ratio of Heidrick & Struggles International, Inc. has been fluctuating over the past five years, ranging from 1.10 in 2019 to 1.25 in 2023. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger ability to meet short-term obligations without relying on external sources of financing.
The upward trend in the cash ratio from 2021 to 2023 reflects an improvement in the company's liquidity position. This could be an indication of better cash management practices or increased cash reserves. On the other hand, the slight decrease in the cash ratio in 2022 compared to 2021 may suggest a temporary dip in liquidity.
Overall, a cash ratio above 1 indicates that Heidrick & Struggles International, Inc. has more than enough cash to cover its current liabilities, which could be seen as a positive sign of financial health and stability. Investors, creditors, and other stakeholders may view a high cash ratio favorably as it implies a lower risk of default on short-term obligations.
Peer comparison
Dec 31, 2023