Hexcel Corporation (HXL)
Cash ratio
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 227,000 | 97,700 | 104,200 | 105,700 | 112,000 | 90,900 | 99,200 | 112,800 | 127,700 | 105,800 | 115,300 | 82,000 | 103,300 | 68,000 | 257,200 | 329,300 | 64,400 | 47,000 | 55,400 | 43,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 43,000 | 43,000 | — | 44,000 | 45,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 315,900 | 252,900 | 276,100 | 290,100 | 329,800 | 283,700 | 271,200 | 247,100 | 247,600 | 224,900 | 235,600 | 219,900 | 183,100 | 175,500 | 219,900 | 309,900 | 322,600 | 347,000 | 359,700 | 349,900 |
| Cash ratio | 0.72 | 0.39 | 0.38 | 0.36 | 0.34 | 0.32 | 0.37 | 0.46 | 0.52 | 0.66 | 0.67 | 0.37 | 0.80 | 0.64 | 1.17 | 1.06 | 0.20 | 0.14 | 0.15 | 0.12 |
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 measures a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Analyzing the trend in Hexcel Corp.'s cash ratio over the past eight quarters, we observe fluctuations in the ratio. The cash ratio has exhibited an increasing trend from Q1 2022 to Q4 2023, indicating an improvement in the company's ability to meet its short-term liabilities with its available cash.
The cash ratio was at its lowest in Q4 2022 at 0.55, and has shown a steady increase in subsequent quarters, reaching its highest level of 0.93 in Q4 2023. This upward trend suggests that Hexcel Corp. has been building up its cash reserves and strengthening its liquidity position over time.
Overall, the increasing trend in Hexcel Corp.'s cash ratio signifies an improvement in the company's ability to cover its short-term obligations with cash, reflecting a positive liquidity position. It indicates that the company has been effectively managing its cash resources to ensure financial stability and meet its immediate financial obligations.
Peer comparison
Dec 31, 2023