Insteel Industries Inc (IIIN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.68 | 5.75 | 7.18 | 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 |
| Quick ratio | 3.51 | 3.60 | 4.20 | 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 |
| 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 |
Insteel Industries Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 3, indicating a healthy liquidity position. The current ratio peaked in March 2024 at 7.18 and has remained relatively high since then.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a generally positive trend. Although there have been fluctuations, the quick ratio has been above 1 in most quarters, indicating that the company has an acceptable level of liquidity to cover its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and equivalents, has shown variations but has generally been above 1 in recent quarters. This suggests that Insteel Industries Inc has maintained a strong cash position relative to its current liabilities.
Overall, based on the current, quick, and cash ratios, Insteel Industries Inc appears to have a solid liquidity position, with enough liquid assets to meet its short-term obligations comfortably. However, the company should continue to monitor and manage its liquidity position to ensure stability and sustainability in the future.
Additional liquidity measure
| 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 conversion cycle | days | 77.91 | 79.54 | 80.97 | 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 |
The cash conversion cycle of Insteel Industries Inc has shown some fluctuations over the past few quarters. The trend indicates that the company takes an average of approximately 77 days to convert its investments in raw materials, production, and sales back into cash.
The cycle peaked at 142.46 days at the end of September 2022 but has since decreased significantly and is currently at 77.91 days as of September 2024. This improvement suggests that the company has been effectively managing its inventory, accounts receivable, and accounts payable to shorten the time it takes to convert its resources into cash.
It is worth noting that a shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital. However, fluctuations in this cycle could also be influenced by factors such as seasonal trends, changes in customer payment terms, or shifts in inventory management strategies.
Overall, the recent trend of decreasing cash conversion cycle for Insteel Industries Inc is a positive sign that the company is streamlining its operations and enhancing its cash flow management.