Insteel Industries Inc (IIIN)
Cash ratio
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 85,615 | 125,670 | 91,740 | 80,156 | 42,638 | 48,316 | 63,045 | 69,725 | 63,020 | 89,884 | 89,827 | 58,940 | 50,182 | 68,688 | 61,371 | 40,363 | 67,114 | 38,181 | 7,449 | 490 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 33,437 | 46,155 | 51,059 | 45,089 | 44,913 | 62,596 | 95,036 | 73,816 | 62,574 | 68,849 | 75,629 | 59,193 | 46,773 | 53,678 | 59,730 | 48,125 | 40,282 | 28,413 | 37,707 | 41,115 |
| Cash ratio | 2.56 | 2.72 | 1.80 | 1.78 | 0.95 | 0.77 | 0.66 | 0.94 | 1.01 | 1.31 | 1.19 | 1.00 | 1.07 | 1.28 | 1.03 | 0.84 | 1.67 | 1.34 | 0.20 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($85,615K
+ $—K)
÷ $33,437K
= 2.56
The cash ratio of Insteel Industries Inc has shown fluctuating trends over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents.
In the most recent quarter, the cash ratio was 2.56, indicating that the company had $2.56 in cash and cash equivalents for every dollar of current liabilities. This suggests a strong liquidity position and the ability to meet short-term obligations comfortably.
Looking back at previous quarters, we observe some volatility in the cash ratio. For example, in the quarter ended Jun 30, 2022, the ratio was relatively low at 0.66, signaling a potential liquidity challenge. However, the ratio has been improving since then, reaching a peak of 2.72 in the quarter ended Sep 30, 2023.
Overall, a higher cash ratio is generally preferred as it indicates better ability to cover short-term liabilities with cash on hand. It is important for investors and stakeholders to monitor these ratios over time to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023