National Presto Industries Inc (NPK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 17,663 | 87,657 | 70,711 | 109,805 | 86,036 |
| Short-term investments | US$ in thousands | 5,010 | 26,454 | 24,863 | 34,190 | 68,981 |
| Total current liabilities | US$ in thousands | 60,556 | 72,019 | 53,641 | 53,159 | 55,092 |
| Cash ratio | 0.37 | 1.58 | 1.78 | 2.71 | 2.81 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($17,663K
+ $5,010K)
÷ $60,556K
= 0.37
The cash ratio of National Presto Industries Inc has shown a declining trend over the years, starting at 2.81 on December 31, 2020, and decreasing to 0.37 on December 31, 2024. This indicates a decrease in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents. It is important for the company to closely monitor and manage its cash position, as a declining cash ratio may signal potential liquidity challenges in meeting its immediate obligations. Further analysis of the company's cash flow and liquidity management strategies may be necessary to address this downward trend in the cash ratio.
Peer comparison
Dec 31, 2024