Hexcel Corporation (HXL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	227,000	112,000	127,700	103,300	64,400
Short-term investments	US$ in thousands	—	—	—	44,000	—
Total current liabilities	US$ in thousands	315,900	329,800	247,600	183,100	322,600
Cash ratio		0.72	0.34	0.52	0.80	0.20

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,000K + $—K) ÷ $315,900K
= 0.72

The cash ratio of Hexcel Corp. has fluctuated over the past five years. In 2023, the company's cash ratio improved to 0.93, indicating that Hexcel had $0.93 of cash and cash equivalents for every $1 of current liabilities. This increase suggests a stronger liquidity position compared to the prior year. In 2022, the cash ratio was 0.55, signaling a lower level of liquidity. The company's liquidity improved in 2021 with a cash ratio of 0.80, although it was still below the ideal level of 1. In 2020, the cash ratio was 1.01, indicating ample cash reserves to cover short-term obligations. On the other hand, in 2019, the cash ratio was 0.45, reflecting a relatively weaker liquidity position compared to the other years analyzed. Overall, while the cash ratio has varied, it is important to consider other factors such as industry benchmarks and the company's operational efficiency to gain a comprehensive understanding of Hexcel Corp.'s liquidity position.