Robert Half International Inc (RHI)

Based on the provided data, Robert Half International Inc's liquidity ratios demonstrate a relatively stable and sound liquidity position over the years analyzed.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Robert Half International Inc's current ratio ranged from 1.67 to 1.88 over the period from December 31, 2021, to December 31, 2024. This indicates that the company had sufficient current assets to cover its current liabilities, with a ratio consistently above 1, which is generally considered healthy.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. Robert Half International Inc's quick ratio ranged from 1.02 to 1.38 over the same period. This indicates that the company had an adequate ability to meet its short-term obligations without relying on selling inventory, which is generally a positive sign.

3. Cash Ratio: The cash ratio is the most conservative liquidity measure, representing the company's ability to pay off current liabilities with cash and cash equivalents alone. Robert Half International Inc's cash ratio varied from 0.42 to 0.62 from December 31, 2020, to December 31, 2024. This suggests that the company maintained a sufficient level of cash relative to its current liabilities, although there was some fluctuation over the years.

Overall, based on the liquidity ratios provided, Robert Half International Inc appears to have maintained a solid liquidity position throughout the analyzed period, with a healthy current ratio, adequate quick ratio, and a reasonable cash ratio. This suggests that the company had the ability to meet its short-term obligations without facing significant liquidity constraints.

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Additional liquidity measure

The cash conversion cycle of Robert Half International Inc has exhibited some fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 51.01 days, indicating that on average, it took approximately 51 days for the company to convert its resources invested in inventory and accounts receivable into cash.

By December 31, 2021, the cash conversion cycle had increased to 94.50 days, suggesting a significant slowdown in the company's ability to convert its operating assets into cash. This increase may be attributed to changes in inventory management or the efficiency of accounts receivable collection processes during that period.

Subsequently, by December 31, 2022, the cash conversion cycle improved to 84.28 days, indicating a reduction in the time taken to convert operating assets into cash. However, by the end of December 31, 2023, the cash conversion cycle had increased to 89.63 days, reflecting a slight deterioration in the company's cash conversion efficiency.

In the most recent data available as of December 31, 2024, the cash conversion cycle decreased to 48.64 days, indicating a significant improvement compared to the previous year. This suggests that the company may have implemented strategies to enhance its working capital management, leading to a more efficient conversion of operating assets into cash.

Overall, the fluctuation in Robert Half International Inc's cash conversion cycle over the five-year period highlights the importance of monitoring working capital efficiency and implementing measures to optimize the management of operating assets for improved cash flow performance.