Robert Half International Inc (RHI)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.86 | 1.88 | 1.67 | 1.76 | 1.73 |
| Quick ratio | 1.31 | 1.38 | 1.18 | 1.23 | 1.17 |
| Cash ratio | 0.62 | 0.54 | 0.46 | 0.55 | 0.29 |
The liquidity ratios of Robert Half Inc have shown a consistent trend over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated slightly between 1.67 and 1.88. This indicates that the company has generally maintained a healthy level of current assets relative to its current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited stability, ranging from 1.31 to 1.52. This suggests that Robert Half Inc has a sufficient level of liquid assets to meet its short-term obligations without relying on inventory.
The cash ratio, which assesses the company's ability to cover its short-term liabilities with cash and cash equivalents, has shown improvement over the years, increasing from 0.42 in 2019 to 0.70 in 2023. This indicates that Robert Half Inc has been building up its cash reserves, enhancing its ability to meet immediate financial commitments.
Overall, the liquidity ratios of Robert Half Inc demonstrate a strong financial position with adequate liquidity to meet its short-term obligations. The company's consistent performance in maintaining healthy liquidity ratios reflects prudent management of its current assets and liabilities.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 89.63 | 84.28 | 94.50 | 51.01 | 50.00 |
The cash conversion cycle of Robert Half Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 49.15 days, representing an improvement from the previous year. This indicates that the company takes approximately 49.15 days to convert its investments in inventory and accounts receivable into cash.
Comparing the data over the past five years, there was a moderate increase in the cash conversion cycle from 2021 to 2022, followed by a slight decrease in 2023. Overall, Robert Half Inc has managed to keep its cash conversion cycle relatively stable, with fluctuations occurring within a limited range.
A lower cash conversion cycle is generally desirable as it signifies that the company is efficient in managing its working capital and converting assets into cash. However, it is important to consider industry norms and the company's specific operational characteristics when assessing the effectiveness of the cash conversion cycle.