CSW Industrials Inc (CSWI)

Liquidity ratios

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 Mar 31, 2020
Current ratio 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 2.54
Quick ratio 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 1.58
Cash ratio 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 0.31

CSW Industrials Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown stability over the past few years, ranging between 2.54 and 4.18. This suggests that the company has a comfortable level of current assets to cover its current liabilities.

The quick ratio has also displayed consistency, with values fluctuating between 1.08 and 2.56. This ratio excludes inventory from current assets, providing a more stringent measure of liquidity. CSW Industrials Inc's quick ratio indicates a solid ability to meet short-term obligations without relying heavily on inventory liquidation.

The cash ratio reflects CSW Industrials Inc's ability to cover current liabilities with its cash and cash equivalents. The company has maintained a cash ratio between 0.12 and 1.71, indicating varied levels of immediate liquidity. The substantial increase in the cash ratio towards the end of 2024 suggests an improvement in the company's cash position.

Overall, CSW Industrials Inc's liquidity ratios demonstrate a healthy liquidity position, with the ability to meet short-term obligations efficiently. The company has maintained stable liquidity levels over the years, which is essential for sustaining daily operations and responding to unforeseen financial requirements.

Additional liquidity measure

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 Mar 31, 2020
Cash conversion cycle days 164.37 154.22 146.68 151.09 139.60 146.03 153.38 159.49 166.48 173.52 180.72 171.80 147.93 157.26 164.33 186.40 203.91 123.70 135.02 126.37

The cash conversion cycle is an important metric that assesses how efficiently a company manages its working capital by measuring the time it takes to convert inventory to cash. For CSW Industrials Inc, the trend in the cash conversion cycle over the past several quarters shows fluctuations but generally remains within a range.

From March 31, 2020, to December 31, 2024, the cash conversion cycle for CSW Industrials Inc has ranged from a low of 123.70 days to a high of 203.91 days. Overall, there is some variability in the cycle, indicating potential fluctuations in the company's ability to efficiently manage cash flow through inventory management, accounts receivable, and accounts payable processes.

It is noteworthy that the cash conversion cycle decreased over time, reaching its lowest point at 139.60 days by December 31, 2023, suggesting improvement in working capital management efficiency. However, the cycle increased slightly in the following quarters, with a significant rise observed by June 30, 2024, to 164.37 days.

CSW Industrials Inc should monitor its cash conversion cycle closely to ensure that it remains at an optimal level, balancing the need for inventory management with the efficient collection of receivables and payment of payables. Analyzing variations in the cycle can provide valuable insights into the company's liquidity and operational effectiveness.