Insteel Industries Inc (IIIN)
Quick ratio
| 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 | US$ in thousands | 111,538 | 97,745 | 83,945 | 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 |
| Short-term investments | US$ in thousands | -6,177 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 59,665 | 63,363 | 56,421 | 46,102 | 63,424 | 66,363 | — | 68,789 | 81,646 | — | — | — | 67,917 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 47,034 | 44,715 | 33,384 | 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 |
| 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 |
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 of Insteel Industries Inc has shown fluctuating trends over the past few quarters. As of September 30, 2024, the quick ratio stood at 3.51, which indicates the company has $3.51 in liquid assets available to cover each dollar of its current liabilities. This signifies a strong liquidity position for the company, suggesting its ability to meet short-term obligations without relying too heavily on inventory.
Looking at the trend, the quick ratio has generally been above 1, indicating a healthy liquidity position throughout most of the periods under review. The ratio peaked at 4.20 in March 2024, reflecting a significant increase in liquid assets relative to current liabilities. However, there were periods in the past where the quick ratio fell below 1, such as in the second and third quarters of 2022, indicating potential liquidity concerns during those times.
It is important to note that a quick ratio significantly above 1 may suggest an overly conservative approach to liquidity management, while a ratio below 1 could indicate potential issues with liquidity and the company's ability to cover its short-term obligations. Therefore, the management of Insteel Industries Inc should continue to monitor its quick ratio to ensure it maintains an optimal balance between liquidity and efficient use of resources.
Peer comparison
Sep 30, 2024