Hexcel Corporation (HXL)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Total current assets	US$ in thousands	781,500	828,000	807,600	789,700	864,200	765,400	810,100	807,900	734,400	685,200	691,900	684,400	616,300	619,900	619,300	569,400	535,900	575,800	849,600	1,040,300
Total current liabilities	US$ in thousands	353,500	300,000	293,700	288,600	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
Current ratio		2.21	2.76	2.75	2.74	2.74	3.03	2.93	2.78	2.23	2.42	2.55	2.77	2.49	2.76	2.63	2.59	2.93	3.28	3.86	3.36

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 shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio measures the company's ability to cover short-term liabilities with its current assets. A higher current ratio is generally preferred as it indicates a stronger liquidity position.

Hexcel's current ratio started at a healthy level of 3.36 as of March 31, 2020, and improved to 3.86 as of June 30, 2020. However, there was a slight decline to 2.93 by December 31, 2020. The ratio further decreased to 2.59 by March 31, 2021, and hovered around 2.5 for the next few quarters.

There was a slight improvement in the current ratio by March 31, 2023, where it reached 2.78, but it saw some fluctuations in the following quarters. As of December 31, 2024, the current ratio decreased to 2.21 compared to the previous quarter.

Overall, Hexcel Corporation's current ratio has shown some variability over the period, with the ratio generally staying above 2, indicating that the company has a strong ability to cover its short-term obligations with current assets. Investors and stakeholders typically prefer a current ratio of 2 or higher for comfort in the company’s ability to meet its short-term liabilities.