Hawkins Inc (HWKN)

Liquidity ratios

	Mar 31, 2024	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
Current ratio	1.96	2.45	2.19	2.40	2.55	2.83	2.77	2.88	2.24	2.77	2.37	2.52	2.31	2.63	2.43	2.48	2.11	2.48	2.47	2.48
Quick ratio	1.18	1.49	1.44	1.54	1.51	0.07	0.04	0.07	1.24	1.67	1.35	1.45	1.33	1.45	1.32	1.30	1.15	1.25	1.29	1.34
Cash ratio	0.07	0.07	0.12	0.07	0.08	0.07	0.04	0.07	0.03	0.31	0.10	0.08	0.04	0.13	0.05	0.08	0.07	0.14	0.08	0.10

Hawkins Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has exhibited some fluctuations over the periods, ranging from 1.96 to 2.83. A current ratio above 1 suggests that the company has more current assets than current liabilities, indicating good short-term financial health. However, a decreasing trend in the current ratio may signal potential issues with managing short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown variability, ranging from 0.04 to 1.67. A quick ratio above 1 is generally considered healthy, as it suggests the company can meet its short-term obligations without relying on selling inventory. The fluctuation in the quick ratio implies changes in the company's ability to quickly cover its immediate liabilities.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated between 0.03 and 0.31. A cash ratio above 0.1 is typically desired, as it indicates a good ability to cover short-term obligations with cash on hand. The variability in the cash ratio suggests fluctuations in the company's cash position over the periods, potentially impacting its ability to meet immediate payment demands solely with cash reserves.

Overall, while the current, quick, and cash ratios of Hawkins Inc have shown fluctuations over the periods, maintaining ratios above 1 indicates a generally healthy liquidity position. However, it would be advisable for the company to closely monitor these ratios and take steps to stabilize them to ensure continued ability to meet short-term financial obligations effectively.

Additional liquidity measure

		Mar 31, 2024	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
Cash conversion cycle	days	54.62	57.42	52.25	63.86	67.08	24.36	25.93	25.88	74.32	73.07	67.71	73.96	76.00	77.19	75.53	74.54	62.41	63.67	68.80	66.80

The cash conversion cycle of Hawkins Inc has fluctuated over the past two years, with a general trend of inconsistency. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter ending March 31, 2024, the cash conversion cycle was 54.62 days, showing an improvement compared to the previous quarter. This indicates that the company was able to manage its inventory and accounts receivable efficiently to convert them into cash faster.

Looking back over the last eight quarters, there have been periods of higher and lower cash conversion cycle days. Notably, in the quarter ending December 31, 2022, the cycle was exceptionally low at 24.36 days, suggesting strong efficiency in managing working capital.

However, in other periods such as the one ending March 31, 2023, the cash conversion cycle increased significantly to 67.08 days, indicating potential challenges in converting investments into cash.

Overall, Hawkins Inc should focus on maintaining a shorter cash conversion cycle to improve its cash flow and operational efficiency. Managing inventory levels, optimizing accounts receivable collection, and streamlining accounts payable processes could help in achieving this goal.