Hexcel Corporation (HXL)

Quick 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	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	—	—	—	—	—	—
Receivables	US$ in thousands	234,700	236,800	257,300	265,300	222,700	202,700	234,200	212,100	160,300	176,600	168,700	164,400	125,400	149,900	191,600	266,700	227,600	288,900	313,300	324,300
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($227,000K + $—K + $234,700K) ÷ $315,900K
= 1.46

Hexcel Corp.'s quick ratio has been relatively stable over the past eight quarters, ranging from 1.23 to 1.68. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.

The gradual increase in the quick ratio from Q1 2022 to Q4 2023 suggests an improvement in Hexcel Corp.'s liquidity position. A quick ratio above 1.5 is generally considered healthy, indicating that the company can meet its short-term debt obligations without relying heavily on inventory or slow-moving assets.

Overall, Hexcel Corp.'s quick ratio performance indicates a strong ability to meet its short-term obligations using its liquid assets, providing a level of financial stability and sustainability.