American Woodmark Corporation (AMWD)
Quick ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 48,195 | 87,398 | 41,732 | 22,325 | 91,071 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 111,171 | 132,107 | 119,163 | 156,961 | 146,866 |
| Total current liabilities | US$ in thousands | 182,942 | 195,726 | 178,124 | 216,228 | 220,447 |
| Quick ratio | 0.87 | 1.12 | 0.90 | 0.83 | 1.08 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($48,195K
+ $—K
+ $111,171K)
÷ $182,942K
= 0.87
The quick ratio of American Woodmark Corporation has experienced fluctuations over the analyzed period from April 30, 2021, to April 30, 2025. At the end of the fiscal year 2021, the quick ratio was 1.08, indicating that the company's liquid assets were sufficient to cover its current liabilities with a slight margin. In the subsequent year, 2022, the ratio declined to 0.83, suggesting a decrease in liquidity and possibly a relative reduction in liquid assets or an increase in current liabilities. This decrease indicates a movement toward less immediate liquidity, potentially raising concerns about short-term financial flexibility.
By April 30, 2023, the quick ratio rebounded slightly to 0.90, reflecting an improvement from the previous year but still remaining below the one-to-one threshold, which commonly signifies adequate liquidity. The ratio then increased further to 1.12 by April 30, 2024, surpassing the critical threshold and indicating a favorable liquidity position where the company's liquid assets comfortably cover current liabilities. This suggests an enhancement in liquidity management or a reduction in current liabilities relative to liquid assets.
However, the ratio declined again to 0.87 by April 30, 2025, falling below the 1.00 mark, which may imply a slight reduction in liquidity or a growth in current liabilities outpacing liquid assets. This fluctuation highlights the variability in the company's short-term liquidity position over the years, potentially influenced by operational or financial strategies, changes in current asset composition, or accounting circumstances.
Overall, the trend shows periods of both liquidity strength and relative decline, with the most recent data indicating a modest loosening of liquidity position relative to 2024. The company’s quick ratio has demonstrated the capacity to maintain a liquidity buffer above or near the critical threshold at certain points but also underscores the importance of continued effective management to sustain a favorable liquidity metric.