REX American Resources Corporation (REX)

Cash ratio

Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Cash and cash equivalents US$ in thousands 223,397 69,612 229,846 144,501 179,658
Short-term investments US$ in thousands 155,260 211,331 25,877 36,194 26,073
Total current liabilities US$ in thousands 66,259 54,599 50,483 30,737 31,599
Cash ratio 5.71 5.15 5.07 5.88 6.51

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,397K + $155,260K) ÷ $66,259K
= 5.71

The cash ratio of REX American Resources Corporation has shown variability over the past five years. The ratio has fluctuated between 5.07 and 6.51, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger liquidity position, as seen in 2020 and 2021, when the ratios were 6.51 and 5.88, respectively. In contrast, the ratios in 2022 and 2023 decreased slightly to 5.07 and 5.15, signaling a potential decrease in liquidity. However, the ratio improved in 2024 to 5.71, showing an enhanced ability to meet short-term obligations with cash on hand. Overall, the trend in the cash ratio of REX American Resources Corporation indicates fluctuations in liquidity over the past five years.