Insteel Industries Inc (IIIN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.94 | 4.10 | 3.10 | 1.78 | 2.48 | 2.08 | 0.66 | 0.94 | 1.01 | 2.29 | 1.19 | 1.00 | 1.07 | 1.28 | 1.03 | 0.84 | 1.67 | 1.34 | 0.20 | 0.01 |
| 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 |
Insteel Industries Inc's liquidity ratios show a generally positive trend over the past few quarters. The current ratio, which indicates the company's ability to cover short-term obligations with current assets, has been consistently high, ranging from 3.01 to 6.93. This suggests that the company is in a strong position to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has also shown improvement over the quarters, averaging around 1.5 to 4.1. This indicates that the company has an adequate level of liquid assets to cover short-term liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also been relatively high, ranging from 0.66 to 2.72. This suggests that the company has a solid cash position to meet its immediate obligations.
Overall, Insteel Industries Inc's liquidity ratios reflect a healthy financial position with a strong ability to meet short-term obligations. The consistent improvement in these ratios over the quarters indicates effective management of liquidity and financial resources.
Additional liquidity measure
| 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 conversion cycle | days | 72.78 | 77.09 | 89.37 | 55.38 | 106.73 | 142.46 | 87.15 | 56.57 | 60.31 | 80.54 | 14.93 | 35.26 | 33.49 | 24.28 | 21.99 | 27.17 | 27.12 | 39.84 | 61.19 | 72.03 |
The cash conversion cycle of Insteel Industries Inc has fluctuated over the past few quarters. The trend shows variability in the efficiency of the company's cash management and working capital turnover.
The company had a relatively high cash conversion cycle of 106.73 days in the fourth quarter of 2022, indicating a longer period required to convert raw materials into cash inflows. This may have been a result of inventory build-up or slower collection of receivables during that period.
However, in the first quarter of 2021, the cash conversion cycle dropped significantly to 14.93 days, suggesting improved efficiency in managing working capital and converting sales into cash. This could have been due to effective inventory management and prompt collection of receivables.
Overall, Insteel Industries Inc appears to have experienced some fluctuations in its cash conversion cycle, indicating the need for ongoing monitoring and management of working capital components to optimize cash flow efficiency.