American Woodmark Corporation (AMWD)
Cash ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,398 | 41,732 | 22,325 | 91,071 | 57,656 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,500 |
| Total current liabilities | US$ in thousands | 195,726 | 178,124 | 216,228 | 220,447 | 149,590 |
| Cash ratio | 0.45 | 0.23 | 0.10 | 0.41 | 0.40 |
April 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($87,398K
+ $—K)
÷ $195,726K
= 0.45
The cash ratio of American Woodmark Corporation has varied over the past five years, ranging from 0.10 to 0.45. A cash ratio of 1.0 or higher is generally considered healthy as it indicates the company has enough cash and cash equivalents to cover its current liabilities.
The company's cash ratio was relatively low in 2022 at 0.10, indicating a weaker liquidity position compared to other years. However, it improved significantly in 2024 to 0.45, suggesting the company has enhanced its ability to meet short-term obligations using available cash resources.
Overall, the upward trend in the cash ratio from 2022 to 2024 reflects an improved liquidity position for American Woodmark Corporation, indicating a strengthened ability to cover short-term liabilities with cash on hand. This indicates a positive liquidity trend for the company, providing a better cushion against potential financial risks.