Hawkins Inc (HWKN)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,153 | 7,566 | 3,496 | 2,998 | 4,277 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 114,477 | 129,252 | 122,826 | 90,778 | 67,391 |
| Total current liabilities | US$ in thousands | 103,307 | 90,871 | 101,466 | 70,462 | 62,220 |
| Quick ratio | 1.18 | 1.51 | 1.24 | 1.33 | 1.15 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,153K
+ $—K
+ $114,477K)
÷ $103,307K
= 1.18
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, indicating the company has enough liquid assets to cover its current liabilities.
Hawkins Inc's quick ratio has fluctuated over the past five years, ranging from 1.15 to 1.51. A higher quick ratio indicates a stronger ability to meet short-term obligations without relying on potentially less liquid assets. In 2023, the quick ratio was at its highest at 1.51, suggesting a healthier liquidity position. However, in 2020, the quick ratio was at its lowest at 1.15, indicating a comparatively lower liquidity position.
The quick ratio of 1.18 as of March 31, 2024, suggests that Hawkins Inc has $1.18 of liquid assets available to cover each dollar of current liabilities. While the quick ratio is above 1, indicating a sufficient level of liquidity, it has decreased from the previous year. This trend may merit further investigation into the company's liquidity management and ability to meet its short-term financial obligations.
Peer comparison
Mar 31, 2024