Insteel Industries Inc (IIIN)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 111,538 | 125,670 | 48,316 | 89,884 | 68,688 |
| Short-term investments | US$ in thousands | -6,177 | — | — | — | — |
| Receivables | US$ in thousands | 59,665 | 63,424 | 81,646 | 67,917 | 53,817 |
| Total current liabilities | US$ in thousands | 47,034 | 46,155 | 62,596 | 68,849 | 53,678 |
| Quick ratio | 3.51 | 4.10 | 2.08 | 2.29 | 2.28 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($111,538K
+ $-6,177K
+ $59,665K)
÷ $47,034K
= 3.51
The quick ratio, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations with its most liquid assets. Insteel Industries Inc's quick ratio has fluctuated over the past five years, as follows:
- As of September 30, 2024, the quick ratio stands at 3.51, indicating that the company has $3.51 in liquid assets available to cover each dollar of its current liabilities. This suggests a strong ability to meet short-term obligations.
- In the previous year, as of September 30, 2023, the quick ratio was higher at 4.10, showing a further improvement in the company's liquidity position and its ability to meet short-term obligations comfortably.
- In the fiscal year ending September 30, 2022, the quick ratio was 2.08, which was a significant decrease compared to the prior year. This lower ratio suggests a slight decline in liquidity but still indicates that the company has enough liquid assets to cover its short-term liabilities.
- For September 30, 2021, the quick ratio was 2.29, showing a slight improvement from the previous year and indicating that the company's liquidity position was relatively stable and capable of meeting its short-term obligations.
- Finally, as of September 30, 2020, the quick ratio was 2.28, which was quite comparable to the quick ratio reported in the following year. This consistency in the quick ratio over these two years suggests a steady liquidity position for the company.
Overall, the trend in Insteel Industries Inc's quick ratio indicates fluctuations in its liquidity position over the years, with some years showing improvement while others show slight declines. However, the company generally appears to maintain a healthy level of liquid assets relative to its current liabilities, demonstrating a solid ability to meet its short-term financial obligations.
Peer comparison
Sep 30, 2024