National Presto Industries Inc (NPK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 50,356 | 73,250 | 55,707 | 56,536 | 44,317 |
| Total current liabilities | US$ in thousands | 72,019 | 53,641 | 53,159 | 55,092 | 39,295 |
| Quick ratio | 2.28 | 3.15 | 3.76 | 3.84 | 7.16 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($87,657K
+ $26,454K
+ $50,356K)
÷ $72,019K
= 2.28
The quick ratio of National Presto Industries Inc has shown a declining trend over the past five years. The ratio decreased from 7.16 in 2019 to 2.28 in 2023. This decline indicates a diminishing ability of the company to meet its short-term obligations using its most liquid assets. While a higher quick ratio is generally preferred as it suggests a stronger liquidity position, a quick ratio above 1 indicates the company's ability to cover its current liabilities with its quick assets. However, the decreasing trend in the quick ratio for National Presto Industries Inc may signal potential liquidity concerns and the need for closer monitoring of the company's short-term financial health and ability to manage its current liabilities effectively. Further analysis and investigation into the reasons behind this trend would be necessary to understand the company's liquidity position better.
Peer comparison
Dec 31, 2023