Robert Half International Inc (RHI)

Liquidity ratios

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
Current ratio 1.66 1.72 1.76 1.85 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
Quick ratio 1.02 1.11 1.14 2.43 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
Cash ratio 0.42 0.44 0.43 1.70 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

The current ratio of Robert Half International Inc has shown stability over the past few years, ranging between 1.66 and 1.96. This indicates the company's ability to cover its short-term liabilities with its current assets. The gradual increase in the current ratio from 1.66 in September 2021 to 1.88 in December 2022 suggests an improvement in the company's liquidity position.

On the other hand, the quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, has fluctuated more significantly. The ratio ranged from a low of 1.02 in December 2024 to a high of 2.43 in March 2024. This volatility may indicate varying levels of inventory, prepaid expenses, and accounts receivable.

The cash ratio of Robert Half International Inc has generally been healthy, indicating the company holds an adequate amount of cash to cover its current liabilities. The increase in the cash ratio from 0.42 in December 2024 to 1.70 in March 2024 is notable and suggests a stronger cash position.

Overall, Robert Half International Inc's liquidity ratios reflect a stable current ratio, fluctuating quick ratio, and generally healthy cash ratio, indicating a solid ability to meet short-term obligations with available assets.

Additional liquidity measure

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 conversion cycle days 48.58 58.31 54.30 50.90 89.63 88.71 51.27 90.29 84.28 55.18 98.85 106.14 107.98 108.18 60.55 112.53 51.01 86.19 78.05 81.16

The cash conversion cycle (CCC) is a key liquidity measure that reflects the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It consists of the Inventory Conversion Period, Accounts Receivable Collection Period, and Accounts Payable Payment Period.

Analyzing the provided data on Robert Half International Inc's cash conversion cycle reveals fluctuations over time. In recent quarters, there has been variability in the company's efficiency in managing its cash conversion cycle:

1. The data shows that the CCC was relatively stable in the range of 50 to 90 days during the period analyzed.
2. In some quarters, such as December 31, 2020, June 30, 2021, and December 31, 2024, the CCC was relatively low, indicating that the company managed its cash conversion efficiently during those periods.
3. Conversely, in other quarters, such as March 31, 2021, September 30, 2021, and March 31, 2022, the CCC was notably higher, implying potential challenges in efficiently converting investments to cash.
4. Overall, there is a mixed performance in managing the cash conversion cycle, with fluctuations suggesting potential areas for improvement in inventory management, accounts receivable collection, and accounts payable payment processes.

From an investor or analyst perspective, monitoring these fluctuations in the cash conversion cycle can provide insights into Robert Half International Inc's operational efficiency and effectiveness in managing working capital, which is crucial for sustaining business operations and future growth.