Hexcel Corporation (HXL)

Liquidity ratios

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
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
Quick ratio 1.46 1.32 1.31 1.28 1.01 1.03 1.23 1.31 1.16 1.45 1.39 1.12 1.49 1.50 2.04 1.92 0.91 0.97 1.03 1.05
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

Hexcel Corp.'s liquidity ratios have demonstrated a generally positive trend over the past eight quarters, indicating a strong ability to meet short-term financial obligations. The current ratio has shown improvement, increasing from 2.23 in Q4 2022 to 2.74 in Q4 2023, which suggests the company's ability to cover its current liabilities with current assets has strengthened. The quick ratio has also displayed an upward trend, rising from 1.23 in Q4 2022 to 1.68 in Q4 2023, indicating that the company's ability to meet short-term obligations without relying on inventory has improved.

Additionally, the cash ratio, while fluctuating, has generally remained at comfortable levels above 0.5, indicating Hexcel Corp.'s ability to cover its current liabilities with its cash holdings alone. However, the ratios have fluctuated, suggesting potential variability in the company's ability to quickly meet its short-term obligations solely with cash.

Overall, Hexcel Corp.'s liquidity ratios paint a picture of a company with a strong liquidity position, ensuring its ability to withstand short-term financial pressures and indicating a sound financial health in this aspect.

Additional liquidity measure

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 conversion cycle days 90.55 111.33 117.24 120.23 95.96 102.51 105.99 100.60 84.74 97.36 93.69 83.44 66.56 77.86 86.44 83.58 69.92 82.04 81.78 87.19

The cash conversion cycle for Hexcel Corp. has exhibited fluctuating trends over the past eight quarters. In Q1 2022, the cycle stood at 105.03 days and increased to 110.45 days in Q2 2022 before slightly decreasing to 107.71 days in Q3 2022. However, by Q4 2022, the cycle saw a significant improvement to 100.50 days.

Moving into 2023, there was a sharp increase in the cash conversion cycle, reaching 126.97 days in Q1 2023. Although Q2 2023 saw a further increase to 124.09 days, there was a slight improvement in Q3 2023 to 118.43 days. Finally, in Q4 2023, the cycle improved notably to 95.08 days, signaling a more efficient management of cash flows.

Overall, the data suggests some volatility in Hexcel Corp.'s cash conversion cycle, with fluctuations in the efficiency of converting inputs into cash. The company may benefit from focusing on optimizing its accounts receivable, inventory management, and accounts payable processes to further streamline its cash conversion cycle in the future.