CSW Industrials Inc (CSWI)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Current ratio 4.03 4.18 3.82 2.73 2.86 2.77 2.83 2.99 2.99 2.95 2.92 2.72 2.56 2.55 2.86 2.65 2.59 2.81 3.05 2.84
Quick ratio 2.56 2.44 2.56 1.34 1.45 1.17 1.26 1.35 1.32 1.08 1.25 1.31 1.19 1.09 1.46 1.39 1.29 1.22 2.04 1.69
Cash ratio 1.53 1.59 1.71 0.17 0.20 0.23 0.14 0.15 0.18 0.14 0.12 0.13 0.14 0.16 0.20 0.17 0.12 0.24 0.82 0.36

Based on the provided data, let's analyze CSW Industrials Inc's liquidity ratios:

1. Current Ratio:
- The current ratio shows a fluctuating trend over the periods, ranging from a low of 2.55 to a high of 4.18.
- It indicates the company's ability to meet short-term obligations with its current assets.
- CSW Industrials Inc generally maintained a current ratio above 2, signifying a healthy liquidity position.
- The ratio peaked at 4.18 on December 31, 2024, indicating a significant improvement in short-term liquidity.

2. Quick Ratio:
- The quick ratio also experienced variability, fluctuating between 1.08 and 2.56.
- This ratio excludes inventory from current assets to provide a more conservative measure of liquidity.
- CSW Industrials Inc generally maintained a quick ratio above 1, indicating a reasonable ability to meet short-term obligations without relying heavily on inventory.
- The ratio improved to 2.56 on December 31, 2024, reflecting a stronger ability to cover immediate liabilities with more liquid assets.

3. Cash Ratio:
- The cash ratio ranged from a low of 0.12 to a high of 1.71 over the periods.
- This ratio focuses solely on cash and cash equivalents as a percentage of current liabilities.
- CSW Industrials Inc showed fluctuations in its cash ratio, but generally, the company had enough cash to cover a portion of its short-term liabilities.
- The ratio improved significantly to 1.71 on September 30, 2024, suggesting a substantial increase in the ability to settle immediate obligations with cash on hand.

In summary, CSW Industrials Inc has shown overall solid liquidity positions based on these ratios, with fluctuations observed over the periods. The company has maintained ratios above 1 for the quick and current ratios, ensuring it can meet short-term obligations, and the cash ratio has also shown improvements, indicating enhanced cash reserves relative to its short-term liabilities.


Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Cash conversion cycle days 168.47 164.37 154.22 146.68 151.09 139.60 146.03 153.38 159.49 166.48 173.52 180.72 171.80 147.93 157.26 164.33 186.40 203.91 123.70 135.02

The cash conversion cycle of CSW Industrials Inc has varied over the reporting periods provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to December 31, 2020, there was a significant increase in the cash conversion cycle, reaching a peak of 203.91 days. This increase indicates that the company may have experienced challenges in efficiently managing its working capital during this period.

Subsequently, from December 31, 2020, to September 30, 2021, there was a consistent downward trend in the cash conversion cycle, indicating improvements in the company's ability to manage its working capital and convert assets into cash more effectively.

The cash conversion cycle continued to fluctuate over the following quarters but generally trended downwards, suggesting enhanced efficiency in managing inventory, accounts receivable, and accounts payable. This improvement implies that CSW Industrials Inc may have implemented better inventory control, credit policies, and payment terms during these periods.

Overall, a declining trend in the cash conversion cycle is a positive indicator, as it signifies that the company is becoming more adept at managing its working capital and generating cash flows from its operations in a timely manner. A lower cash conversion cycle typically implies better liquidity and operational efficiency within the company.