National Presto Industries Inc (NPK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,657 | 70,711 | 109,805 | 86,036 | 79,579 |
| Short-term investments | US$ in thousands | 26,454 | 24,863 | 34,190 | 68,981 | 157,466 |
| Total current liabilities | US$ in thousands | 72,019 | 53,641 | 53,159 | 55,092 | 39,295 |
| Cash ratio | 1.58 | 1.78 | 2.71 | 2.81 | 6.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($87,657K
+ $26,454K)
÷ $72,019K
= 1.58
The cash ratio of National Presto Industries Inc has been gradually decreasing over the past five years, from 6.03 in 2019 to 1.58 in 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over the years. While a higher cash ratio is generally preferred as it signifies a stronger liquidity position, the diminishing trend in National Presto Industries Inc's cash ratio may suggest potential concerns regarding its liquidity management. Therefore, further analysis of the company's cash management practices and liquidity position is recommended to understand the factors contributing to this decline and to ensure sustainable financial health.
Peer comparison
Dec 31, 2023