Hexcel Corporation (HXL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 125,400 | 98,200 | 75,400 | 85,900 | 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 |
| Short-term investments | US$ in thousands | — | — | 6,100 | 5,800 | 4,300 | — | — | — | 6,200 | — | — | — | — | 43,000 | 43,000 | — | 44,000 | 45,000 | — | — |
| Receivables | US$ in thousands | 212,000 | 258,600 | 283,100 | 271,000 | 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 |
| 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 |
| Quick ratio | 0.95 | 1.19 | 1.24 | 1.26 | 1.48 | 1.32 | 1.31 | 1.28 | 1.03 | 1.03 | 1.23 | 1.31 | 1.16 | 1.45 | 1.39 | 1.12 | 1.49 | 1.50 | 2.04 | 1.92 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($125,400K
+ $—K
+ $212,000K)
÷ $353,500K
= 0.95
The quick ratio of Hexcel Corporation has shown some fluctuations over time based on the provided data. The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term liabilities with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
From March 31, 2020, to December 31, 2024, the quick ratio ranged from a high of 2.04 to a low of 0.95. The quick ratio peaked at 2.04 on June 30, 2020, indicating strong liquidity at that point in time. However, there was a decline in the quick ratio in subsequent periods, reaching its lowest point of 0.95 on December 31, 2024, which may raise concerns about the company's liquidity position.
Despite some fluctuations, the quick ratio generally stayed above 1 throughout the period, suggesting that Hexcel Corporation has been able to meet its short-term obligations with its liquid assets. It is important to monitor future changes in the quick ratio to assess the company's liquidity risk and ability to manage its short-term liabilities effectively.
Peer comparison
Dec 31, 2024