CSW Industrials Inc (CSWI)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 22,156 | 18,455 | 16,619 | 10,088 | 18,338 |
| Short-term investments | US$ in thousands | 1,186 | 877 | — | — | — |
| Total current liabilities | US$ in thousands | 115,836 | 108,039 | 117,402 | 82,748 | 59,146 |
| Cash ratio | 0.20 | 0.18 | 0.14 | 0.12 | 0.31 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,156K
+ $1,186K)
÷ $115,836K
= 0.20
The cash ratio of CSW Industrials Inc has fluctuated over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. In the most recent fiscal year ending March 31, 2024, the cash ratio stood at 0.20, indicating that the company had $0.20 in cash and cash equivalents for every $1 of short-term liabilities.
Comparing this to the previous year, the cash ratio increased from 0.18 in 2023 to 0.20 in 2024, which suggests an improvement in the company's liquidity position. However, when looking back further, the cash ratio has varied, with a low of 0.12 in 2021 and a high of 0.31 in 2020.
The downward trend from 0.31 in 2020 to 0.20 in 2024 may reflect changes in the company's cash management practices, such as increased investments, acquisitions, or changes in working capital management. It is essential for the company to maintain a balance between cash reserves for liquidity and investing excess cash for growth opportunities.
Overall, the cash ratio provides insight into how well CSW Industrials Inc can meet its short-term obligations using its readily available cash resources and indicates the company's ability to weather unexpected financial challenges.
Peer comparison
Mar 31, 2024