Hawkins Inc (HWKN)
Quick ratio
| 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 | US$ in thousands | 7,153 | 5,741 | 10,974 | 7,050 | 7,566 | 6,146 | 3,924 | 5,995 | 3,496 | 23,438 | 6,802 | 5,222 | 2,998 | 7,969 | 3,160 | 4,510 | 4,277 | 7,265 | 4,056 | 5,607 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 80 | — | — |
| Receivables | US$ in thousands | 114,477 | 113,016 | 124,813 | 138,340 | 129,252 | — | — | — | 122,826 | 102,831 | 90,057 | 90,936 | 90,778 | 77,768 | 74,492 | 69,453 | 67,391 | 56,655 | 65,396 | 69,026 |
| Total current liabilities | US$ in thousands | 103,307 | 79,678 | 94,462 | 94,303 | 90,871 | 84,880 | 90,851 | 88,163 | 101,466 | 75,535 | 71,549 | 66,512 | 70,462 | 59,032 | 58,758 | 56,681 | 62,220 | 51,281 | 53,853 | 55,689 |
| 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 |
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 of Hawkins Inc has shown some fluctuation over the past few quarters. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 is generally considered healthy as it suggests that the company has enough liquid assets to cover its current liabilities.
From the data provided, we see that the quick ratio has been above 1 for most quarters, indicating a strong ability to meet short-term obligations. The highest quick ratio recorded was 1.67 at Dec 31, 2021, which suggests a very strong liquidity position at that time.
However, there are a few quarters where the quick ratio fell considerably below 1, such as Dec 31, 2022, and Sep 30, 2022, indicating potential liquidity concerns during those periods. The quick ratio at these points was 0.07 and 0.04 respectively, which signifies a limited ability to cover short-term liabilities with current liquid assets.
Overall, Hawkins Inc's quick ratio has displayed both strengths and weaknesses in liquidity management. It is essential for the company to maintain a healthy quick ratio above 1 consistently to ensure it can meet its short-term obligations without facing liquidity issues.
Peer comparison
Mar 31, 2024