Insteel Industries Inc (IIIN)
Cash ratio
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 111,538 | 97,745 | 83,945 | 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 |
| Short-term investments | US$ in thousands | -6,177 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 47,034 | 44,715 | 33,384 | 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 |
| Cash ratio | 2.24 | 2.19 | 2.51 | 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 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($111,538K
+ $-6,177K)
÷ $47,034K
= 2.24
The cash ratio of Insteel Industries Inc has shown fluctuations over the past years, ranging from a low of 0.66 to a high of 2.72. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash readily available to cover its short-term obligations.
Insteel Industries Inc's cash ratio has generally been above 1 in recent periods, indicating that the company has had more than enough cash to cover its short-term liabilities. The ratio peaked at 2.72 in the third quarter of 2023, reflecting a strong liquidity position at that time. However, there have been fluctuations in the ratio over the quarters, which may indicate changes in the company's cash management practices or financial performance.
Overall, the upward trend in the cash ratio from the beginning of 2020 to mid-2023 suggests an improvement in the company's liquidity position. Investors and analysts may see a consistently high cash ratio as a positive indicator of financial health and stability, as it signifies the company's ability to meet its short-term obligations without relying heavily on external financing.
Peer comparison
Sep 30, 2024