Mueller Water Products (MWA)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 309,900 | 160,300 | 146,500 | 227,500 | 208,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 258,000 | 218,800 | 241,000 | 220,100 | 155,000 |
| Cash ratio | 1.20 | 0.73 | 0.61 | 1.03 | 1.35 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($309,900K
+ $—K)
÷ $258,000K
= 1.20
The cash ratio of Mueller Water Products demonstrates notable fluctuations over the analyzed period from September 30, 2020, to September 30, 2024. At the end of fiscal year 2020, the cash ratio was 1.35, indicating that the company held sufficient cash and cash equivalents to cover its current liabilities more than once, reflecting a strong liquidity position. This ratio declined to 1.03 by September 30, 2021, suggesting a slight decrease in the company's immediate liquidity, but still maintaining a comfortable coverage level.
The downward trend continued into fiscal year 2022, with the cash ratio decreasing significantly to 0.61. This reduction implies that cash and cash equivalents fell short of covering current liabilities on their own, indicating a decrease in short-term liquidity strength. Several factors could have contributed to this decline, such as increased current liabilities or a reduction in cash holdings.
However, the cash ratio improvements observed in subsequent years highlight a partial recovery. By September 30, 2023, the ratio increased to 0.73, indicating that the company's cash position strengthened relative to its current liabilities, though it still did not reach the levels observed in 2020. Finally, in September 2024, the ratio rose further to 1.20, surpassing the 2020 level and signaling a robust liquidity stance where cash and cash equivalents comfortably cover the company's current liabilities.
Overall, the trend reflects initial strength, a notable dip in 2022, followed by a recovery phase culminating in a strengthened liquidity position in 2024. The fluctuations suggest variable short-term liquidity management, with the most recent data indicating an improved cash cushion for meeting immediate liabilities.
Peer comparison
Sep 30, 2024