Hawkins Inc (HWKN)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,153 | 7,566 | 3,496 | 2,998 | 4,277 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 103,307 | 90,871 | 101,466 | 70,462 | 62,220 |
| Cash ratio | 0.07 | 0.08 | 0.03 | 0.04 | 0.07 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,153K
+ $—K)
÷ $103,307K
= 0.07
The cash ratio of Hawkins Inc has fluctuated over the past five years, ranging from 0.03 to 0.08. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current liabilities with cash on hand.
In 2022, the cash ratio was at its lowest point of 0.03, suggesting that Hawkins Inc had a relatively lower level of cash compared to its short-term liabilities. However, the ratio improved in 2023 and 2024 to 0.08 and 0.07, respectively, indicating an increase in the company's liquidity position.
Overall, the company's cash ratio demonstrates some variability but has shown improvement in recent years, which may indicate a better ability to meet its short-term obligations using cash resources. It is important for Hawkins Inc to maintain a sufficient level of cash reserves to ensure financial stability and continue to monitor its cash position to effectively manage its liquidity.
Peer comparison
Mar 31, 2024