Insteel Industries Inc (IIIN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 85,615 | 125,670 | 91,740 | 80,156 | 42,638 | 48,316 | 63,045 | 69,725 | 63,020 | 89,884 | 89,827 | 58,940 | 50,182 | 68,688 | 61,371 | 40,363 | 67,114 | 38,181 | 7,449 | 490 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 46,102 | 63,424 | 66,363 | — | 68,789 | 81,646 | — | — | — | 67,917 | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($85,615K
+ $—K
+ $46,102K)
÷ $33,437K
= 3.94
The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio is generally seen as favorable as it indicates a company has an ample amount of liquid assets to cover its current liabilities.
Analyzing Insteel Industries Inc's quick ratio over the past few quarters reveals fluctuations in the company's liquidity position. In the most recent quarter, the quick ratio was 3.94, indicating a strong ability to cover short-term obligations with liquid assets. This was an improvement from the previous quarter's quick ratio of 4.10.
Looking back further, the quick ratio has seen variability, with some quarters showing a quick ratio below 1, suggesting potential difficulties in meeting short-term obligations with readily available assets. The lowest quick ratio in recent quarters was observed in the second quarter of 2022 at 0.66, highlighting a possible liquidity challenge during that period.
Overall, the trend in Insteel Industries Inc's quick ratio indicates fluctuations in liquidity levels, with some quarters showing stronger liquidity positions than others. It would be important to further investigate the reasons behind the fluctuations and assess the company's overall liquidity management strategies to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023