Hawkins Inc (HWKN)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio 2.15 2.50 2.27 2.27 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
Quick ratio 1.28 1.42 1.33 1.38 1.18 1.49 1.44 1.54 1.51 1.55 1.49 1.64 1.24 1.67 1.35 1.45 1.33 1.45 1.32 1.30
Cash ratio 0.05 0.10 0.08 0.09 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

Hawkins Inc's current ratio has exhibited fluctuations over the years, ranging from a low of 1.96 on March 31, 2024, to a high of 2.88 on June 30, 2022. Generally, the current ratio has remained above 2, which indicates that the company has a strong ability to cover its short-term liabilities with its current assets. However, the current ratio decreased to 2.15 on March 31, 2025, signaling a potential strain on the company's liquidity position.

When looking at the quick ratio, we observe a similar trend of variability. The quick ratio also hovers above 1, reflecting Hawkins Inc's capability to meet its short-term obligations without relying on inventory sales. Despite this, the quick ratio decreased to 1.18 on March 31, 2024, highlighting a slight weakening of the company's immediate liquidity position.

The cash ratio, which measures a company's ability to pay off its current liabilities exclusively with its cash and cash equivalents, has experienced some fluctuations as well. The cash ratio varies from a low of 0.03 on March 31, 2022, to a high of 0.31 on December 31, 2021. The company's cash ratio provides insights into its ability to settle its short-term liabilities quickly, with some periods indicating a stronger position than others.

Overall, while Hawkins Inc has generally maintained healthy liquidity ratios, the downward trends observed in certain periods suggest a need for careful monitoring of its liquidity position to ensure that it can meet its short-term obligations effectively.

Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 60.24 63.53 60.49 66.92 54.62 57.42 52.25 63.86 67.08 73.61 79.35 86.19 74.32 73.07 67.71 73.96 75.89 77.19 75.53 74.54

The cash conversion cycle of Hawkins Inc has shown fluctuations over the periods provided in the data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to March 31, 2021, the cash conversion cycle remained relatively stable, ranging between 73.96 to 77.19 days. However, there was a significant improvement in efficiency from September 30, 2021, to December 31, 2021, with the cycle decreasing to 67.71 days.

The efficiency gains continued into 2022, with the cycle reaching its lowest point of 52.25 days on September 30, 2023. This indicates that Hawkins Inc was managing its inventory and receivables more effectively during this period.

However, from June 30, 2023, to March 31, 2025, there was a slight upward trend in the cash conversion cycle, indicating a potential slowing down of cash flows from sales relative to the investments in inventory and resources.

Overall, it is essential for Hawkins Inc to monitor its cash conversion cycle closely to ensure efficient management of working capital and to optimize its cash flow position.