Ethan Allen Interiors Inc (ETD)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 69,710 | 62,130 | 109,919 | 104,596 | 72,276 |
| Short-term investments | US$ in thousands | 91,319 | 110,577 | 11,199 | 0 | — |
| Total current liabilities | US$ in thousands | 153,696 | 163,097 | 215,643 | 223,902 | 138,978 |
| Cash ratio | 1.05 | 1.06 | 0.56 | 0.47 | 0.52 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,710K
+ $91,319K)
÷ $153,696K
= 1.05
The cash ratio of Ethan Allen Interiors Inc has shown a fluctuating trend over the past five years. In particular, the ratio has increased from 0.52 in 2020 to 1.05 in 2024, indicating a strengthened ability to cover its short-term liabilities with cash on hand. This suggests that the company has improved its liquidity position, which is a positive sign for its financial health. However, it is essential to note that a significant portion of the company's assets may be tied up in inventory or accounts receivable, as reflected in the cash ratio being below 1 in previous years. This implies that not all current liabilities can be covered by cash alone, highlighting the need for a balanced approach to managing liquidity and working capital.
Peer comparison
Jun 30, 2024