Ethan Allen Interiors Inc (ETD)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 76,178 | 69,710 | 62,130 | 109,919 | 104,596 |
| Short-term investments | US$ in thousands | 59,955 | 91,319 | 110,577 | 11,199 | 11,199 |
| Total current liabilities | US$ in thousands | 152,851 | 153,696 | 163,097 | 215,643 | 223,902 |
| Cash ratio | 0.89 | 1.05 | 1.06 | 0.56 | 0.52 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($76,178K
+ $59,955K)
÷ $152,851K
= 0.89
The cash ratio of Ethan Allen Interiors Inc has experienced notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025.
In June 2021, the cash ratio was recorded at 0.52, indicating that the company's cash and cash equivalents covered approximately 52% of its current liabilities. This suggests a relatively conservative liquidity position, with less than the full extent of short-term obligations supported solely by cash.
By June 2022, the cash ratio increased modestly to 0.56, reflecting a slight improvement in liquidity, albeit still maintaining a cautious stance. The upward trend continued significantly by June 2023, when the ratio reached 1.06, surpassing the 1.0 threshold. This indicates that at that point, Ethan Allen Interiors had more than enough cash to settle all current liabilities, thus reflecting a strong liquidity position.
The ratio remained stable into June 2024 at 1.05, signaling sustained liquidity strength. However, by June 2025, the cash ratio declined somewhat to 0.89. While still below 1.0, this figure suggests a slight reduction in cash holdings relative to short-term obligations but continues to represent a generally solid liquidity buffer.
Overall, the trend demonstrates a significant strengthening of liquidity from 2021 through 2023, with the ratio crossing the 1.0 threshold in 2023, indicative of enhanced short-term financial health. The subsequent slight decrease in 2025 may denote a reduction in cash reserves or increased current liabilities, but the company's cash position still remains relatively robust within this timeframe.
Peer comparison
Jun 30, 2025