REX American Resources Corporation (REX)

The liquidity ratios of REX American Resources Corporation, as indicated by the current ratio, quick ratio, and cash ratio, have shown a consistent trend over the years.

1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. REX American Resources Corporation has maintained a high current ratio, ranging from 6.82 to 8.58 over the past five years. This indicates a strong ability to cover its short-term liabilities with current assets.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. REX American Resources Corporation has demonstrated a steady quick ratio, varying from 5.66 to 7.11 during the same period. This suggests a solid ability to meet short-term obligations without relying on inventory liquidation.

3. Cash Ratio: The cash ratio focuses solely on the company's ability to cover its short-term obligations with cash and cash equivalents. REX American Resources Corporation has consistently maintained a healthy cash ratio, ranging from 5.07 to 6.51 over the past five years. This signifies a strong capacity to settle immediate liabilities with cash on hand.

Overall, REX American Resources Corporation appears to have robust liquidity positions based on its current ratio, quick ratio, and cash ratio trends over the analyzed period, indicating the company's ability to comfortably meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of REX American Resources Corporation has been fluctuating over the past five years. The company's efficiency in managing its cash resources and converting them into inventory and accounts receivable and eventually back into cash has varied.

In January 2024, the cash conversion cycle improved significantly to 5.17 days, indicating that the company was able to efficiently manage its working capital, inventory, and accounts receivable, resulting in a quicker cash conversion process compared to the previous year.

In January 2023, the cash conversion cycle was 18.69 days, showing a moderate increase compared to the previous year. This suggests a slightly less efficient cash management process and a longer time required to convert inventory and accounts receivable back into cash.

In January 2022, the cash conversion cycle was 20.68 days, which was also higher than the previous year. This increase indicates a further slowdown in the conversion of cash from inventory and accounts receivable, potentially signaling delays in collecting receivables or managing inventory levels.

In January 2021, the cash conversion cycle was 46.41 days, marking a significant deterioration in the efficiency of managing cash resources. This prolonged cycle suggests challenges in converting inventory and accounts receivable into cash, possibly due to issues with inventory management or delays in collecting receivables.

In January 2020, the cash conversion cycle was 31.97 days, indicating an improvement from the previous year but still higher than the most recent data. This suggests that the company made some progress in managing its working capital efficiency, but there may still be room for improvement in accelerating the cash conversion cycle.

Overall, the trend in REX American Resources Corporation's cash conversion cycle over the past five years shows some variability, with improvements in some years and challenges in others. The company may benefit from focusing on optimizing its working capital management practices to maintain a more consistent and efficient cash conversion cycle in the future.