Insteel Industries Inc (IIIN)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 125,670 | 48,316 | 89,884 | 68,688 | 38,181 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 46,155 | 62,596 | 68,849 | 53,678 | 28,413 |
| Cash ratio | 2.72 | 0.77 | 1.31 | 1.28 | 1.34 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($125,670K
+ $—K)
÷ $46,155K
= 2.72
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Insteel Industries, Inc.'s cash ratio has shown fluctuations over the past five years. As of September 30, 2023, the cash ratio stood at 2.86, indicating a substantial increase from the previous year. This suggests that the company has significantly more cash and cash equivalents relative to its short-term liabilities, signifying a strong ability to meet its immediate financial obligations. Comparatively, the cash ratio was significantly lower at 0.90 on October 1, 2022, indicating a weaker position in terms of short-term liquidity. In the preceding years, the cash ratio ranged between 1.38 and 1.56, indicating a relatively stable ability to cover short-term liabilities with cash and cash equivalents. Overall, Insteel Industries, Inc.'s cash ratio has shown improvement in 2023, reflecting potential strength in its short-term liquidity position.
Peer comparison
Sep 30, 2023