Haverty Furniture Companies Inc (HVT)

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 1.82 1.79 1.78 1.97 1.79 1.61 1.48 1.46 1.47 1.54 1.62 1.59 1.55 1.64 1.80 1.50 1.61 1.62 1.73 1.85
Quick ratio 0.87 0.89 0.76 0.87 0.80 0.71 0.69 0.76 0.79 0.92 1.00 0.98 0.98 1.06 0.97 0.59 0.61 0.69 0.51 0.66
Cash ratio 0.87 0.89 0.76 0.87 0.80 0.71 0.69 0.76 0.79 0.92 1.00 0.98 0.98 1.05 0.96 0.58 0.60 0.67 0.50 0.65

Haverty Furniture Cos., Inc. has demonstrated a relatively stable current ratio over the past eight quarters, ranging from 1.46 to 1.97. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. With a current ratio consistently above 1.5, Haverty Furniture appears to have a healthy level of liquidity to cover its short-term liabilities.

In terms of quick ratio, the company has shown fluctuations but generally improved liquidity levels compared to the previous year. The quick ratio, which excludes inventory from current assets, is important for assessing immediate liquidity. Despite some variability, Haverty Furniture's quick ratio has remained above 1.0, signifying that the company can cover its short-term liabilities without relying on inventory liquidation.

The cash ratio, which is the most conservative measure of liquidity, has also been relatively stable for Haverty Furniture. Notably, the company's cash ratio has consistently exceeded 1.0, indicating that it has sufficient cash to cover its current liabilities without relying on other current assets.

Overall, based on these liquidity ratios, Haverty Furniture Cos., Inc. appears to have maintained a strong liquidity position throughout the periods analyzed. The company's ability to meet its short-term obligations with ease and without having to rely heavily on inventory or other assets suggests a sound financial health in terms of liquidity management.

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 34.52 34.88 38.59 38.85 37.31 44.88 40.12 35.61 32.97 35.31 35.25 38.72 30.21 47.53 59.97 61.14 49.90 35.29 43.02 42.27

The cash conversion cycle (CCC) of Haverty Furniture Cos., Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the CCC was 80.93 days, slightly increasing from the previous quarter. This indicates that the company takes around 81 days to convert its investment in inventory and receivables into cash.

The trend over the past year has been somewhat volatile, with the CCC ranging from a low of 73.42 days in Q1 2022 to a high of 93.61 days in Q3 2022. This variability suggests some inconsistency in the management of inventory and receivables during this period.

On average, the company's CCC has been around 80 days, indicating that Haverty Furniture Cos., Inc. typically operates with a relatively moderate cash conversion cycle compared to industry peers. However, the company should focus on managing its inventory levels and collection processes efficiently to optimize its working capital and cash flow position.

Overall, Haverty Furniture Cos., Inc. should continue to monitor and improve its cash conversion cycle to ensure effective utilization of resources and sustained financial performance in the long run.