Quanex Building Products (NX)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 97,744 | 58,474 | 55,093 | 40,061 | 51,621 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 389,670 | 195,182 | 191,869 | 216,034 | 176,574 |
| Total current liabilities | US$ in thousands | 272,867 | 134,663 | 139,843 | 158,001 | 130,240 |
| Quick ratio | 1.79 | 1.88 | 1.77 | 1.62 | 1.75 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($97,744K
+ $—K
+ $389,670K)
÷ $272,867K
= 1.79
The quick ratio of Quanex Building Products has shown some fluctuations over the five-year period from October 31, 2020, to October 31, 2024. The ratio has ranged from a low of 1.62 to a high of 1.88 during this period, indicating varying levels of liquidity.
In general, a quick ratio above 1 is considered healthy as it suggests the company has an adequate level of liquid assets to cover its short-term obligations. Quanex Building Products' quick ratio has consistently remained above the 1 benchmark throughout the period, indicating that the company has been able to meet its short-term liabilities comfortably.
The slight fluctuations in the quick ratio over the years may reflect changes in the company's liquidity position, possibly influenced by factors such as changes in inventory levels, accounts receivable, and short-term liabilities. Overall, a quick ratio above 1.5 is generally considered favorable, and Quanex Building Products' quick ratio has been consistently above this threshold, demonstrating a reasonable level of liquidity and ability to meet its short-term financial obligations.
Peer comparison
Oct 31, 2024