CSW Industrials Inc (CSWI)

CSW Industrials Inc has shown consistent and healthy liquidity ratios over the past five years. The current ratio, which measures the firm's ability to cover short-term obligations with its current assets, has remained above 2 in all years, indicating that the company has more than enough current assets to meet its short-term liabilities.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been at satisfactory levels above 1 in all years. This suggests that CSW Industrials Inc can cover its short-term liabilities using only its most liquid assets.

The cash ratio, which represents the firm's ability to cover immediate liabilities with its cash and cash equivalents, has shown a positive trend over the period. The ratio has increased significantly from 0.12 in 2021 to 1.53 in 2025, indicating an improvement in the company's ability to fulfill its short-term obligations with its readily available cash resources.

Overall, the liquidity ratios of CSW Industrials Inc demonstrate a strong financial position with ample liquidity to meet its short-term obligations and unexpected financial needs.

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Additional liquidity measure

CSW Industrials Inc's cash conversion cycle has shown fluctuations over the past five years. In March 2021, the cash conversion cycle was 186.41 days, indicating a longer period for CSW Industrials to convert resources into cash. Over the subsequent years, there was a decreasing trend in the cash conversion cycle, reaching 150.19 days by March 31, 2024. This suggests that the company improved its efficiency in managing cash flows and working capital during this period. However, by March 31, 2025, the cash conversion cycle increased to 168.47 days, indicating a possible slowdown in cash conversion efficiency. Overall, the downward trend from 2021 to 2024 reflects positive progress, but the uptick in 2025 may warrant further investigation into the company's working capital management practices.