Quanex Building Products (NX)
Current ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 611,268 | 273,600 | 280,665 | 249,047 | 207,306 |
| Total current liabilities | US$ in thousands | 272,867 | 134,663 | 139,843 | 158,001 | 130,240 |
| Current ratio | 2.24 | 2.03 | 2.01 | 1.58 | 1.59 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $611,268K ÷ $272,867K
= 2.24
Quanex Building Products has exhibited a fluctuating trend in its current ratio over the past five years. The current ratio, a measure of a company's ability to meet its short-term obligations with available current assets, has shown an increase from 1.59 in 2020 to 2.24 in 2024. This indicates an improved liquidity position, with the company having more than double the current assets compared to current liabilities in 2024.
The consistent improvement in the current ratio from 2021 to 2024 reflects a better liquidity position for Quanex Building Products, as the company has been able to strengthen its ability to cover short-term obligations with its current assets. Investors and creditors often view a higher current ratio favorably, as it suggests a lower risk of financial distress due to potential liquidity issues. It's important for the company to maintain a healthy current ratio to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Oct 31, 2024