Quanex Building Products (NX)
Liquidity ratios
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.24 | 2.36 | 2.22 | 2.27 | 2.03 | 2.12 | 2.22 | 2.22 | 2.01 | 1.93 | 2.04 | 1.98 | 1.58 | 1.72 | 1.73 | 1.86 | 1.59 | 1.85 | 2.93 | 1.91 |
| Quick ratio | 1.79 | 1.42 | 1.21 | 1.12 | 1.88 | 1.25 | 1.16 | 1.06 | 1.77 | 1.00 | 1.07 | 1.00 | 1.62 | 1.00 | 1.07 | 1.12 | 1.75 | 1.17 | 1.86 | 0.96 |
| Cash ratio | 0.36 | 0.73 | 0.47 | 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 |
Quanex Building Products has shown a generally positive trend in its liquidity ratios over the past few quarters. The current ratio has been consistently above 2, indicating the company has more than enough current assets to cover its current liabilities. This suggests a healthy liquidity position.
The quick ratio, which excludes inventory from current assets, has fluctuated over the periods, but has generally remained above 1, indicating that the company can meet its short-term obligations without relying heavily on inventory.
The cash ratio, which is the most conservative liquidity measure, has also shown positive trends, with values generally above 0.3. This indicates that Quanex Building Products has a sufficient amount of cash and near-cash assets to cover its current liabilities, even though it has decreased in recent quarters.
Overall, Quanex Building Products appears to have a strong liquidity position, as indicated by its current, quick, and cash ratios. However, monitoring these ratios over time is essential to ensure that the company can continue to meet its short-term obligations effectively.
Additional liquidity measure
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 157.90 | 42.85 | 44.20 | 45.95 | 71.63 | 45.00 | 49.43 | 50.25 | 73.80 | 54.00 | 53.79 | 50.35 | 76.08 | 41.22 | 35.05 | 41.32 | 66.73 | 39.80 | 46.14 | 41.44 |
The cash conversion cycle of Quanex Building Products has shown variability over the past few periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales.
In the most recent period ending on October 31, 2024, the cash conversion cycle was relatively high at 157.90 days, indicating that it took the company a longer time to generate cash from its operational activities. This could suggest potential issues with inventory management, accounts receivable collection, or payment of accounts payable.
Comparing this to the previous period on July 31, 2024, where the cash conversion cycle was significantly lower at 42.85 days, it indicates that Quanex Building Products was more efficient in converting its investments into cash during that period.
Looking at historical trends, the company's cash conversion cycle has shown fluctuations, with some periods demonstrating more efficient cash conversion cycles than others. It is important for the company to analyze the factors contributing to these fluctuations and work towards improving efficiency, especially during periods when the cash conversion cycle is extended to ensure optimal cash flow management and operational performance.