Quanex Building Products (NX)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 97,744 | 58,474 | 55,093 | 40,061 | 51,621 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 272,867 | 134,663 | 139,843 | 158,001 | 130,240 |
| Cash ratio | 0.36 | 0.43 | 0.39 | 0.25 | 0.40 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($97,744K
+ $—K)
÷ $272,867K
= 0.36
The cash ratio of Quanex Building Products has shown some fluctuation over the past five years. In 2024, the cash ratio stood at 0.36, indicating that the company had $0.36 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased compared to the prior year, where it was at 0.43, suggesting a slight decrease in liquidity. However, it was still higher than 2022 when the ratio was 0.39.
In 2021, the cash ratio was 0.25, the lowest among the five years, indicating weaker liquidity position that year. However, there was a significant improvement in 2020, with the cash ratio standing at 0.40.
Overall, fluctuations in the cash ratio suggest changes in the company's ability to cover its short-term obligations with cash on hand. It is important for Quanex Building Products to maintain a balance between cash reserves and investments in order to meet its financial obligations efficiently.
Peer comparison
Oct 31, 2024