Quanex Building Products (NX)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 58,474 | 55,093 | 40,061 | 51,621 | 30,868 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 195,182 | 191,869 | 216,034 | 176,574 | 165,691 |
| Total current liabilities | US$ in thousands | 134,663 | 139,843 | 158,001 | 130,240 | 109,754 |
| Quick ratio | 1.88 | 1.77 | 1.62 | 1.75 | 1.79 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($58,474K
+ $—K
+ $195,182K)
÷ $134,663K
= 1.88
The quick ratio of Quanex Building Products Corp has exhibited a fluctuating trend over the past five years. As of October 31, 2023, the quick ratio stands at 1.30, indicating an improvement from the previous year. The company's ability to meet its short-term obligations with its most liquid assets has strengthened, as evidenced by the ratio exceeding 1. The quick ratio was relatively lower in the prior year at 1.14, but showed an upward trend from the prior two years. This suggests that the company's liquidity position has improved in the most recent fiscal year, implying a better ability to cover short-term liabilities with its readily available assets. However, a closer examination of the components of the quick ratio, such as the level of inventory and current liabilities, would provide further insights into the company's liquidity management.
Peer comparison
Oct 31, 2023