National Presto Industries Inc (NPK)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,657 | 70,411 | 73,362 | 75,625 | 70,711 | 61,784 | 67,089 | 82,531 | 109,805 | 91,013 | 73,052 | 65,121 | 86,036 | 44,428 | 32,359 | 43,035 | 79,579 | 59,171 | 63,438 | 61,735 |
| Short-term investments | US$ in thousands | 26,454 | 24,966 | 26,345 | 29,013 | 24,863 | 43,710 | 43,029 | 35,298 | 34,190 | 33,313 | 42,465 | 52,092 | 68,981 | 79,098 | 98,382 | 83,951 | 84,781 | 91,517 | 91,517 | 97,767 |
| Total current liabilities | US$ in thousands | 72,019 | 63,416 | 56,471 | 56,376 | 53,641 | 51,632 | 48,207 | 49,646 | 53,159 | 61,158 | 46,028 | 51,530 | 55,092 | 46,639 | 55,166 | 46,083 | 39,295 | 45,250 | 42,127 | 42,579 |
| Cash ratio | 1.58 | 1.50 | 1.77 | 1.86 | 1.78 | 2.04 | 2.28 | 2.37 | 2.71 | 2.03 | 2.51 | 2.27 | 2.81 | 2.65 | 2.37 | 2.76 | 4.18 | 3.33 | 3.68 | 3.75 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Analyzing the cash ratio of National Presto Industries Inc over the past few quarters, we observe fluctuations in the ratio. The ratio has generally been above 1, indicating that the company holds more cash and cash equivalents than short-term liabilities.
Looking at the trend, the cash ratio peaked at 4.18 in December 2019 and has shown a decreasing trend since then. Despite some fluctuations, the ratios have remained above 2 for the most part, suggesting a healthy cash position relative to short-term liabilities.
The cash ratio exceeding 1 implies that National Presto Industries Inc has a relatively strong liquidity position, enabling it to meet its short-term obligations without significant financial strain. However, the downward trend in the ratio from its peak in December 2019 could indicate changes in the company's cash management strategies or potentially increased short-term liabilities.
Overall, the cash ratio analysis suggests that National Presto Industries Inc has maintained a solid liquidity position, but management may need to monitor the trend to ensure continued financial stability.
Peer comparison
Dec 31, 2023