Quanex Building Products (NX)
Cash ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 44,422 | 58,474 | 73,252 | 43,496 | 43,055 | 55,093 | 50,030 | 38,900 | 31,719 | 40,061 | 43,663 | 49,258 | 43,426 | 51,621 | 41,073 | 80,252 | 23,114 | 30,868 | 10,651 | 20,262 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 48 | — | — | — | — |
| Total current liabilities | US$ in thousands | 111,454 | 134,663 | 135,367 | 118,648 | 119,990 | 139,843 | 158,731 | 146,588 | 131,628 | 158,001 | 142,354 | 135,722 | 112,213 | 130,240 | 106,939 | 79,042 | 90,578 | 109,754 | 86,630 | 84,350 |
| Cash ratio | 0.40 | 0.43 | 0.54 | 0.37 | 0.36 | 0.39 | 0.32 | 0.27 | 0.24 | 0.25 | 0.31 | 0.36 | 0.39 | 0.40 | 0.38 | 1.02 | 0.26 | 0.28 | 0.12 | 0.24 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($44,422K
+ $—K)
÷ $111,454K
= 0.40
The cash ratio of Quanex Building Products has fluctuated over the past several quarters, ranging from 0.12 to 1.02. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents on hand. A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may imply potential liquidity challenges.
Quanex Building Products' cash ratio has shown variability over the periods, with some quarters exhibiting stronger cash positions relative to current liabilities (e.g., 1.02 in April 2020), suggesting a comfortable liquidity position. However, the company also experienced periods with lower cash ratios (e.g., 0.12 in April 2019), indicating a potential strain on liquidity to cover short-term obligations.
Overall, monitoring the trend of the cash ratio over time can provide insights into Quanex Building Products' liquidity management and its ability to handle short-term financial commitments. It may be beneficial for stakeholders to consider the company's cash reserves in relation to its current liabilities to assess its liquidity risk and financial health.
Peer comparison
Jan 31, 2024