American Woodmark Corporation (AMWD)

Liquidity ratios

Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Current ratio 2.06 2.14 2.22 2.25 2.07 2.45 2.26 1.96 1.98 1.99 1.90 1.79 1.86 1.92 2.07 2.18 1.85 1.82 1.76 2.05
Quick ratio 1.05 1.12 1.20 1.18 0.90 0.97 0.94 0.83 0.83 0.83 0.83 0.80 1.08 1.14 1.34 1.41 1.04 1.03 1.06 1.24
Cash ratio 0.45 0.52 0.53 0.51 0.23 0.27 0.21 0.14 0.10 0.00 0.04 0.14 0.41 0.44 0.58 0.72 0.28 0.30 0.40 0.40

The liquidity ratios of American Woodmark Corporation, as reflected in the data provided, indicate the company's ability to meet its short-term obligations.

The current ratio, which measures the firm's ability to cover its short-term liabilities with its current assets, has shown some fluctuations over the periods under review. The ratio has generally been above 2, indicating a healthy liquidity position. However, there are some variations over time, suggesting changes in the company's ability to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displays some variability. Despite periodic fluctuations, the ratio has generally remained above 1, indicating that the company has sufficient liquid assets to cover its short-term liabilities without relying heavily on inventory.

The cash ratio, which is the most conservative measure of liquidity, focuses solely on the firm's ability to pay off its short-term liabilities with cash and cash equivalents. This ratio has also shown fluctuations, with periods of higher and lower levels of cash reserves relative to current liabilities.

Overall, the trend in these liquidity ratios suggests that American Woodmark Corporation has generally maintained a solid liquidity position, with the ability to meet its short-term obligations across the periods. However, fluctuations in the ratios highlight the importance of closely monitoring the company's liquidity management practices to ensure continued financial stability.

Additional liquidity measure

Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Cash conversion cycle days 42.84 41.95 42.88 41.06 44.01 50.09 55.98 54.18 52.44 53.58 52.03 45.85 44.96 45.30 44.35 42.53 41.94 41.87 39.62 41.43

The cash conversion cycle (CCC) of American Woodmark Corporation has fluctuated over the past few quarters. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Based on the data provided, we can see that the company's CCC has ranged from a low of 39.62 days to a high of 55.98 days over the past two years. Generally, a lower CCC indicates that the company is more efficient in managing its working capital and converting its resources into cash.

In the most recent quarter, the CCC stood at 42.84 days, showing a slight increase from the previous quarter. This increase could be attributed to various factors such as changes in inventory management, accounts receivable collection, or payment cycles.

Overall, American Woodmark Corporation's CCC has shown some variability but has generally been within a reasonable range. It would be beneficial for the company to focus on optimizing its working capital management further to potentially reduce the CCC and improve its overall financial efficiency.