American Woodmark Corporation (AMWD)
Quick ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 87,398 | 41,732 | 22,325 | 91,071 | 57,656 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,500 |
| Receivables | US$ in thousands | 117,559 | 119,163 | 156,961 | 146,866 | 126,910 |
| Total current liabilities | US$ in thousands | 195,726 | 178,124 | 216,228 | 220,447 | 149,590 |
| Quick ratio | 1.05 | 0.90 | 0.83 | 1.08 | 1.24 |
April 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($87,398K
+ $—K
+ $117,559K)
÷ $195,726K
= 1.05
The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. American Woodmark Corporation's quick ratio has seen fluctuations over the past five years. In April 2024, the quick ratio improved to 1.05, indicating that the company had $1.05 in liquid assets available to cover each dollar of its current liabilities. This represents an improvement from the previous year, where the quick ratio was 0.90.
In April 2023 and April 2022, the quick ratios were 0.90 and 0.83 respectively, showing a decline in the company's short-term liquidity position. However, in April 2021 and April 2019, the quick ratios were 1.08 and 1.24 respectively, indicating a stronger liquidity position in those years compared to the more recent ones.
Overall, while the quick ratio for American Woodmark Corporation has shown fluctuations, the recent improvement in April 2024 suggests a better ability to cover its short-term obligations with liquid assets compared to the previous year. It is important for the company to maintain a healthy quick ratio to ensure its ability to meet short-term financial obligations efficiently.