REX American Resources Corporation (REX)
Liquidity ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 8.64 | 6.82 | 6.83 | 6.84 | 8.42 |
| Quick ratio | 7.12 | 5.71 | 5.15 | 5.07 | 5.88 |
| Cash ratio | 7.12 | 5.71 | 5.15 | 5.07 | 5.88 |
The current ratio of REX American Resources Corporation has shown consistent strength over the years, starting at 8.42 in January 2021 and gradually declining to 6.82 in January 2024, before slightly increasing to 8.64 in January 2025. This indicates that the company has more than enough current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets, also demonstrates a favorable liquidity position for REX American Resources Corporation. Although there was a slight decrease from 5.88 in January 2021 to 5.07 in January 2022, the ratio has since been relatively stable and increased to 7.12 in January 2025, indicating the company's ability to meet its short-term obligations without relying on inventory.
Moreover, the cash ratio remains stable over the years, mirroring the trends observed in the quick ratio. This ratio provides insight into the company's ability to cover its current liabilities with its cash and cash equivalents. REX American Resources Corporation's financial health is further bolstered by this metric.
Overall, the liquidity ratios of REX American Resources Corporation suggest that the company maintains a strong liquidity position and is capable of meeting its short-term obligations without significant liquidity concerns.
Additional liquidity measure
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 20.98 | 13.40 | 22.06 | 22.76 | 38.05 |
The cash conversion cycle of REX American Resources Corporation has shown a downward trend over the years, indicating an improvement in the efficiency of its cash management. The cycle decreased from 38.05 days as of January 31, 2021, to 22.06 days as of January 31, 2023, demonstrating a significant reduction in the time it takes for the company to convert its investments in inventory and accounts receivable into cash. This positive trend continued in the subsequent years with further reductions in the cash conversion cycle to 13.40 days as of January 31, 2024, and 20.98 days as of January 31, 2025.
A decreasing cash conversion cycle suggests that REX American Resources Corporation has been able to improve its working capital management by efficiently managing its inventory levels, collecting accounts receivable promptly, and optimizing its payment cycles. This trend is favorable as it indicates that the company is effectively utilizing its resources and generating cash quickly from its operational activities, which can lead to improved liquidity and financial stability.