Insteel Industries Inc (IIIN)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 125,670 | 48,316 | 89,884 | 68,688 | 38,181 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 63,424 | 81,646 | 67,917 | 53,817 | 45,397 |
| Total current liabilities | US$ in thousands | 46,155 | 62,596 | 68,849 | 53,678 | 28,413 |
| Quick ratio | 4.10 | 2.08 | 2.29 | 2.28 | 2.94 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($125,670K
+ $—K
+ $63,424K)
÷ $46,155K
= 4.10
The quick ratio of Insteel Industries, Inc. has shown a significant increase over the last five years, indicating an improvement in the company's short-term liquidity position. As of September 30, 2023, the quick ratio stands at 4.24, reflecting a substantial increase from the previous year's 2.20. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has strengthened. Furthermore, the quick ratio has consistently remained above 1 in each of the past five years, indicating that the company has ample quick assets to cover its current liabilities. This upward trend suggests that Insteel Industries has effectively managed its liquidity and is in a strong position to meet its short-term financial obligations.
Peer comparison
Sep 30, 2023