Robert Half International Inc (RHI)
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 | 1.86 | 1.82 | 1.86 | 1.96 | 1.88 | 1.82 | 1.78 | 1.76 | 1.67 | 1.66 | 1.72 | 1.74 | 1.76 | 1.76 | 1.76 | 1.76 | 1.73 | 1.67 | 1.72 | 1.70 |
| Quick ratio | 1.31 | 1.31 | 1.35 | 1.36 | 1.32 | 1.37 | 1.33 | 1.26 | 1.18 | 1.22 | 1.21 | 1.21 | 1.23 | 1.21 | 1.19 | 1.21 | 1.17 | 1.19 | 1.22 | 1.22 |
| Cash ratio | 0.62 | 0.57 | 0.59 | 0.48 | 0.49 | 0.48 | 0.47 | 0.43 | 0.46 | 0.47 | 0.45 | 0.46 | 0.55 | 0.56 | 0.51 | 0.27 | 0.29 | 0.32 | 0.30 | 0.30 |
The liquidity ratios of Robert Half Inc, as depicted in the table, demonstrate a consistent and favorable liquidity position over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged between 1.76 and 1.96, with an average of 1.85. This indicates that Robert Half has had more than enough current assets to meet its current obligations throughout the period.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has ranged from 1.39 to 1.52, averaging 1.45. This ratio suggests that the company has a sufficient amount of highly liquid assets to cover its short-term liabilities without relying on inventory.
Furthermore, the cash ratio, which focuses solely on the availability of cash and cash equivalents to cover current liabilities, has ranged from 0.56 to 0.70, with an average of 0.64. This indicates that Robert Half has maintained a solid cash position to meet its immediate financial obligations.
Overall, the consistent and favorable liquidity ratios of Robert Half Inc suggest that the company has maintained a strong liquidity position, ensuring its ability to meet its short-term obligations without facing financial strain.
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 | 89.63 | 88.71 | 51.27 | 90.29 | 84.28 | 55.18 | 98.85 | 106.14 | 107.98 | 108.18 | 111.97 | 112.53 | 101.47 | 86.19 | 78.05 | 81.16 | 82.32 | 76.75 | 76.53 | 75.26 |
The cash conversion cycle of Robert Half Inc has exhibited some fluctuations over the past eight quarters. In Q4 2023, the company had a cash conversion cycle of 49.15 days, showing an improvement from the previous quarter. This indicates that the company is managing its cash flow more efficiently. Despite the fluctuations, the trend over the past year has shown a slight decrease in the cash conversion cycle, suggesting that the company is becoming more effective in converting its investments in inventory and accounts receivable into cash.
Overall, Robert Half Inc's cash conversion cycle has been relatively stable, staying within a range of around 49 to 56 days over the past two years. This consistency indicates that the company has a consistent approach to managing its working capital and is able to efficiently convert its resources into cash. However, there may still be opportunities for further improvement to shorten the cash conversion cycle and enhance the company's overall liquidity position.