Quanex Building Products (NX)
Quick 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 | 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 | — | — | — | — |
| Receivables | US$ in thousands | 80,063 | 195,182 | 96,204 | 94,038 | 84,672 | 191,869 | 109,467 | 118,195 | 99,355 | 216,034 | 98,286 | 96,521 | 82,538 | 176,574 | 84,479 | 66,892 | 64,036 | 165,691 | 82,302 | 80,646 |
| 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 |
| Quick ratio | 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 | 1.79 | 1.07 | 1.20 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($44,422K
+ $—K
+ $80,063K)
÷ $111,454K
= 1.12
The quick ratio of Quanex Building Products has fluctuated over the past few quarters. The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term obligations.
From January 2020 to January 2022, the quick ratio remained consistently above 1, indicating that Quanex had more than enough liquid assets to cover its short-term liabilities. However, a dip was seen in July 2022 when the quick ratio dropped to 1.00, suggesting a potential strain in meeting short-term obligations with liquid assets alone.
The quick ratio improved in subsequent quarters, peaking at 1.88 in October 2023, signaling a stronger position to handle short-term liabilities. However, the ratio decreased to 1.12 in January 2024, indicating a slight decline in liquidity compared to the previous quarter but still maintaining a healthy position overall.
Overall, Quanex Building Products has generally been able to maintain a solid quick ratio above 1, indicating strong liquidity and the ability to meet short-term obligations with liquid assets. It will be important to monitor future trends to ensure the company's liquidity position remains adequate for its financial obligations.
Peer comparison
Jan 31, 2024