CSW Industrials, Inc. (CSW)
Current ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 592,861 | 331,410 | 323,056 | 300,147 | 214,553 |
| Total current liabilities | US$ in thousands | 147,202 | 115,836 | 108,039 | 117,402 | 82,748 |
| Current ratio | 4.03 | 2.86 | 2.99 | 2.56 | 2.59 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $592,861K ÷ $147,202K
= 4.03
The current ratio of CSW Industrials, Inc. has exhibited relative stability and some variability over the analyzed period from March 31, 2021, through March 31, 2025. As of March 31, 2021, the current ratio stood at 2.59, indicating that the company maintained a healthy liquidity position with more than twice the current assets compared to current liabilities. This ratio experienced a slight decline in the following year, decreasing marginally to 2.56 as of March 31, 2022, which suggests a minor reduction in liquidity but still reflects a strong ability to meet short-term obligations.
By March 31, 2023, the current ratio increased notably to 2.99, approaching a higher threshold of liquidity, potentially indicative of improved short-term financial health or conservative cash and asset management. The ratio then exhibited a slight decrease to 2.86 by March 31, 2024, yet remaining well above 2.5, which signifies continued robust liquidity.
The most significant change occurred by March 31, 2025, when the current ratio rose markedly to 4.03. This substantial increase suggests a significant strengthening of the company's liquidity position, possibly attributable to an increase in current assets, a reduction in current liabilities, or a combination of both. A current ratio above 4.0 typically indicates a very comfortable liquidity cushion, reducing concerns about short-term financial solvency.
In summary, the trend of CSW Industrials, Inc.'s current ratio over this period reflects a generally strong liquidity position, with some fluctuations but an overall upward trend in the most recent year. Such a high current ratio could imply conservative asset management, lower short-term liabilities, or a potential over-concentration in current assets, warranting further analysis of asset composition for a complete liquidity assessment.
Peer comparison
Mar 31, 2025