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

Company name
Symbol
Cash ratio
National Presto Industries Inc
NPK
1.58
Axon Enterprise Inc.
AXON
1.55
Sturm Ruger & Company Inc
RGR
1.86
Vista Outdoor Inc
VSTO
0.16