Insteel Industries Inc (IIIN)

Current 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
Total current assets	US$ in thousands	231,817	298,853	297,635	287,879	288,211	335,332	343,665	282,804	226,804	246,906	227,813	192,242	168,883	197,038	196,786	176,272	174,241	160,584	169,727	174,556
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
Current ratio		6.93	6.47	5.83	6.38	6.42	5.36	3.62	3.83	3.62	3.59	3.01	3.25	3.61	3.67	3.29	3.66	4.33	5.65	4.50	4.25

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $231,817K ÷ $33,437K
= 6.93

The current ratio of Insteel Industries Inc has experienced significant fluctuations over the past few quarters, ranging from a low of 3.01 to a high of 6.93. The ratio measures the company's ability to cover its short-term liabilities with its current assets.

In general, a current ratio above 1 indicates that a company has more current assets than current liabilities, signaling good short-term financial health. Insteel's current ratio has generally been above 3, which is considered healthy.

However, the ratio showed some volatility, with a notable decrease in the current ratio in the first half of 2022 before recovering and reaching its highest level in the most recent quarter. This indicates fluctuations in the company's ability to meet its short-term obligations with its current assets.

Overall, monitoring the trend of the current ratio over time can provide insights into Insteel's liquidity position and financial stability.