Hexcel Corporation (HXL)

Current 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
Total current assets	US$ in thousands	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	704,900	771,600	798,100	782,300
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
Current ratio		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	2.19	2.22	2.22	2.24

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $864,200K ÷ $315,900K
= 2.74

Hexcel Corp.'s current ratio has shown a generally positive trend over the past eight quarters, indicating the company's ability to meet its short-term financial obligations. The current ratio has consistently remained above 2, suggesting that Hexcel has a strong liquidity position, with ample current assets to cover its current liabilities.

The current ratio peaked at 3.03 in Q3 2023, reflecting a significant improvement in liquidity compared to previous quarters. This indicates that Hexcel had $3.03 in current assets for every $1 in current liabilities during that period.

Although the current ratio decreased slightly in Q4 2023 to 2.74, it still remains at a healthy level, providing a cushion for the company to withstand any unexpected financial challenges.

Overall, the trend in Hexcel Corp.'s current ratio indicates a strong liquidity position and a capacity to efficiently manage its short-term financial obligations.