Cavco Industries Inc (CVCO)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 352,687 | 352,808 | 377,264 | 352,234 | 271,427 | 376,148 | 333,249 | 238,072 | 244,150 | 267,265 | 224,291 | 329,753 | 322,279 | 327,487 | 312,243 | 270,547 | 241,826 | 216,882 | 190,478 | 199,820 |
| Short-term investments | US$ in thousands | 18,270 | 16,819 | 14,358 | 14,173 | 14,978 | 16,607 | 16,367 | 15,864 | 20,086 | 21,116 | 18,867 | 19,749 | 19,496 | 16,966 | 16,589 | 16,374 | 14,582 | 13,945 | 13,375 | 13,230 |
| Total current liabilities | US$ in thousands | 273,267 | 271,172 | 305,475 | 293,376 | 293,391 | 278,423 | 306,051 | 304,675 | 294,170 | 272,762 | 282,271 | 242,187 | 237,104 | 213,342 | 208,221 | 179,056 | 172,102 | 161,790 | 169,697 | 175,330 |
| Cash ratio | 1.36 | 1.36 | 1.28 | 1.25 | 0.98 | 1.41 | 1.14 | 0.83 | 0.90 | 1.06 | 0.86 | 1.44 | 1.44 | 1.61 | 1.58 | 1.60 | 1.49 | 1.43 | 1.20 | 1.22 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($352,687K
+ $18,270K)
÷ $273,267K
= 1.36
The cash ratio for Cavco Industries Inc has displayed fluctuations over the past few quarters, ranging from 0.83 to 1.61. The cash ratio provides insight into a company's ability to cover its short-term liabilities with its most liquid assets, cash, and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without resorting to external financing.
The company's cash ratio peaked at 1.61 in the third quarter of 2020, indicating a robust liquidity position at that time. However, it declined to 0.83 in the second quarter of 2022, suggesting a potential strain on the company's ability to cover short-term liabilities with cash alone. Since then, the ratio has shown fluctuating trends but has generally remained above 1, indicating a healthy liquidity position overall.
It is essential for investors and analysts to monitor the cash ratio over time to assess the company's liquidity risk and ability to weather financial challenges. In Cavco Industries Inc's case, the recent improvement in the cash ratio from 0.83 to 1.36 in the latest quarter suggests a strengthened liquidity position, which could enhance the company's financial stability and flexibility in managing its short-term obligations.