Kadant Inc (KAI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 94,660 | 103,832 | 76,371 | 91,186 | 65,682 |
| Short-term investments | US$ in thousands | — | 212,906 | 131 | — | — |
| Receivables | US$ in thousands | 142,462 | 133,929 | 130,297 | 117,209 | 91,540 |
| Total current liabilities | US$ in thousands | 191,565 | 214,409 | 213,461 | 221,497 | 134,688 |
| Quick ratio | 1.24 | 2.10 | 0.97 | 0.94 | 1.17 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($94,660K
+ $—K
+ $142,462K)
÷ $191,565K
= 1.24
The quick ratio of Kadant Inc has shown some fluctuations over the past five years, ranging from 0.94 to 2.10. The ratio was below 1 in 2021 and 2022, indicating that the company may have had difficulties meeting its short-term obligations with its liquid assets alone during those years. However, the ratio improved significantly in 2023, soaring to 2.10, which suggests a healthier liquidity position and a stronger ability to cover its current liabilities with its quick assets. This improvement may indicate better management of short-term assets and liabilities. In 2024, the quick ratio decreased slightly to 1.24, but still remains above 1, indicating that Kadant Inc continues to maintain a relatively strong liquidity position. Overall, the trend in the quick ratio for Kadant Inc shows variations but generally appears to be improving over the years, which may reflect positively on the company's financial stability and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024