Hexcel Corporation (HXL)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	781,500	864,200	734,400	616,300	535,900
Total current liabilities	US$ in thousands	353,500	315,900	329,800	247,600	183,100
Current ratio		2.21	2.74	2.23	2.49	2.93

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $781,500K ÷ $353,500K
= 2.21

The current ratio of Hexcel Corporation has exhibited some fluctuations over the past five years. From December 31, 2020, at 2.93, the ratio decreased to 2.49 by December 31, 2021, indicating a potential decrease in short-term liquidity. This downward trend continued as the ratio dropped further to 2.23 by December 31, 2022, suggesting a potential strain on the company's ability to meet its short-term obligations.

However, there was a recovery in the current ratio by December 31, 2023, rebounding to 2.74, which could indicate an improvement in the company's short-term liquidity position. Nevertheless, the ratio decreased again to 2.21 by December 31, 2024, possibly signaling a renewed challenge in managing short-term liabilities effectively.

Overall, the current ratio of Hexcel Corporation has shown some variability over the last five years, pointing towards fluctuations in the company's ability to cover its short-term obligations with its current assets. Further analysis into the underlying reasons for these fluctuations would be needed to provide a more comprehensive assessment of the company's financial health.