Insteel Industries Inc (IIIN)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 298,853 | 335,332 | 246,906 | 197,038 | 160,584 |
| Total current liabilities | US$ in thousands | 46,155 | 62,596 | 68,849 | 53,678 | 28,413 |
| Current ratio | 6.47 | 5.36 | 3.59 | 3.67 | 5.65 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $298,853K ÷ $46,155K
= 6.47
The current ratio of Insteel Industries, Inc. has shown variability over the past five years. The ratio has increased from 5.65 in 2019 to 6.47 in 2023, indicating a significant improvement in the company's short-term liquidity position. This suggests that the company's current assets are sufficient to cover its current liabilities, providing a strong indication of financial stability. However, it's important to note that the ratio was lower in 2021 at 3.59, which may have raised concerns about the company's ability to meet its short-term obligations at that time. Overall, the upward trend in the current ratio demonstrates an improving liquidity position for Insteel Industries, Inc.
Peer comparison
Sep 30, 2023