National Presto Industries Inc (NPK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 60,556 | 72,019 | 53,641 | 53,159 | 55,092 |
| Quick ratio | 0.37 | 1.58 | 1.78 | 2.71 | 2.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($17,663K
+ $5,010K
+ $—K)
÷ $60,556K
= 0.37
The quick ratio of National Presto Industries Inc has exhibited a declining trend over the past five years, decreasing from 2.81 on December 31, 2020, to 0.37 on December 31, 2024. This indicates a potential deterioration in the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 is generally considered healthy, as it suggests the company can cover its current liabilities with its quick assets, such as cash and marketable securities, without relying on inventory. However, the quick ratio of National Presto Industries Inc has fallen below this threshold in recent years, raising concerns about its liquidity position. Management should closely monitor the trend and take appropriate steps to improve the company's short-term liquidity position.
Peer comparison
Dec 31, 2024