American Woodmark Corporation (AMWD)

Cash ratio

Apr 30, 2025 Apr 30, 2024 Apr 30, 2023 Apr 30, 2022 Apr 30, 2021
Cash and cash equivalents US$ in thousands 48,195 87,398 41,732 22,325 91,071
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 182,942 195,726 178,124 216,228 220,447
Cash ratio 0.26 0.45 0.23 0.10 0.41

April 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($48,195K + $—K) ÷ $182,942K
= 0.26

The cash ratio of American Woodmark Corporation has exhibited notable fluctuations over the analyzed period from April 30, 2021, to April 30, 2025. As of April 30, 2021, the company’s cash ratio stood at 0.41, indicating that cash and cash equivalents covered approximately 41% of current liabilities, reflecting a moderate liquidity position. By April 30, 2022, this ratio declined substantially to 0.10, suggesting a significant reduction in the company's capacity to meet short-term obligations solely through liquid assets, which could imply increased reliance on other current assets or potential liquidity concerns.

In the subsequent year, April 30, 2023, the cash ratio increased to 0.23, indicating some improvement from the previous year's low but still remaining below the initial 2021 level. This modest rise may reflect efforts to bolster liquid assets or a decrease in current liabilities. The most recent data for April 30, 2024, shows a notable increase to 0.45, surpassing the 2021 level and indicating a strong liquidity position whereby nearly half of the current liabilities could be covered by cash and cash equivalents alone. This suggests an advantageous liquidity stance at that time.

However, by April 30, 2025, the cash ratio decreases to 0.26. Although higher than the 2022 figure, it indicates a partial retreat from the peak observed in 2024, suggesting some reduction in cash or liquidity reserves relative to current liabilities. Overall, the trend demonstrates periods of both decline and recovery, with the most recent figures reflecting an improved but somewhat moderated liquidity profile compared to the peak in 2024.