Kadant Inc (KAI)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 94,660 | 88,407 | 73,805 | 81,440 | 103,832 | 76,793 | 66,725 | 81,183 | 76,371 | 72,936 | 76,540 | 86,192 | 91,186 | 82,600 | 73,436 | 65,982 | 65,682 | 53,554 | 57,499 | 60,012 |
| Short-term investments | US$ in thousands | 1,286 | — | 150,356 | — | 212,906 | 212,906 | — | 75 | 131 | — | — | — | -2,975 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 191,565 | 205,227 | 201,978 | 222,051 | 214,409 | 213,564 | 213,218 | 225,847 | 213,461 | 213,000 | 212,971 | 217,580 | 221,497 | 198,659 | 161,180 | 146,594 | 134,688 | 127,862 | 148,386 | 129,899 |
| Cash ratio | 0.50 | 0.43 | 1.11 | 0.37 | 1.48 | 1.36 | 0.31 | 0.36 | 0.36 | 0.34 | 0.36 | 0.40 | 0.40 | 0.42 | 0.46 | 0.45 | 0.49 | 0.42 | 0.39 | 0.46 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($94,660K
+ $1,286K)
÷ $191,565K
= 0.50
The cash ratio of Kadant Inc has exhibited fluctuations over the period under review. The ratio ranged from a low of 0.31 as of June 30, 2023, to a high of 1.48 as of December 31, 2023. Generally, a higher cash ratio indicates a better liquidity position as it measures the company's ability to cover its short-term obligations with its cash and cash equivalents. However, a very high cash ratio may also suggest that the company is not efficiently utilizing its cash resources to generate returns.
Throughout the period, the cash ratio hovered around the 0.40 to 0.50 range, with occasional spikes and dips. Notably, the significant increase to 1.36 as of September 30, 2023, and 1.48 as of December 31, 2023, could indicate a strategic accumulation of cash reserves. This could be due to various reasons such as preparing for potential investments, acquisitions, or economic uncertainties.
Investors and analysts typically view the cash ratio alongside other liquidity ratios to get a comprehensive understanding of a company's short-term financial health. It is essential to consider the company's industry, business model, and future investment plans when evaluating the significance of fluctuations in the cash ratio.
Peer comparison
Dec 31, 2024