REX American Resources Corporation (REX)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 8.64 | 9.93 | 8.07 | 6.72 | 6.82 | 8.59 | 8.16 | 9.97 | 6.83 | 6.53 | 8.52 | 8.82 | 6.84 | 6.60 | 7.36 | 9.11 | 8.42 | 9.46 | 11.65 | 12.44 |
| Quick ratio | 7.12 | 8.30 | 6.67 | 5.61 | 5.71 | 6.82 | 5.98 | 7.35 | 5.15 | 5.06 | 5.84 | 6.02 | 5.07 | 4.71 | 4.85 | 6.51 | 5.88 | 7.56 | 8.75 | 9.88 |
| Cash ratio | 7.12 | 8.30 | 6.67 | 5.61 | 5.71 | 6.82 | 5.98 | 7.35 | 5.15 | 5.06 | 5.84 | 6.02 | 5.07 | 4.71 | 4.85 | 6.51 | 5.88 | 7.56 | 8.75 | 9.88 |
REX American Resources Corporation's liquidity ratios have shown some fluctuations over the reported periods.
The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has decreased from 12.44 in April 2020 to 8.64 in January 2025. This indicates a declining trend in the company's short-term liquidity position, although it has experienced some fluctuations along the way.
The quick ratio, or acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has also shown a downward trend, dropping from 9.88 in April 2020 to 7.12 in January 2025. The decreasing quick ratio suggests a potential strain on the company's ability to meet immediate short-term obligations without relying on selling inventory.
The cash ratio, which represents the most conservative liquidity metric by considering only cash and cash equivalents to cover current liabilities, has followed a similar downward trajectory, falling from 9.88 in April 2020 to 7.12 in January 2025. This trend indicates a reduction in the company's ability to pay off current liabilities solely with its available cash resources.
Overall, the declining trend in all three liquidity ratios suggests that REX American Resources Corporation may be experiencing challenges in maintaining its short-term liquidity position over the reported periods. It would be important for the company to closely monitor its liquidity management and potentially take actions to improve its ability to meet short-term obligations promptly.
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 20.98 | 18.73 | 17.33 | 14.56 | 13.49 | 18.06 | 21.36 | 18.48 | 22.23 | 19.47 | 24.07 | 28.66 | 22.65 | 17.34 | 27.46 | 23.70 | 38.51 | 22.28 | 33.01 | 25.06 |
The cash conversion cycle of REX American Resources Corporation has shown fluctuations over the periods outlined in the data provided. The company's cash conversion cycle is a measure of how quickly the company can convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company can efficiently manage its working capital and generate cash from its operations faster.
Looking at the historical data, we observe that the cash conversion cycle ranged from a low of 13.49 days on January 31, 2024, to a high of 38.51 days on January 31, 2021. The company experienced a significant improvement in its cash conversion cycle from January 31, 2021, where it was comparatively longer, to the following periods where it decreased to around 20 days or less.
Overall, REX American Resources Corporation appears to have effectively managed its working capital and improved its efficiency in converting resources into cash during the later periods. Maintaining a lower cash conversion cycle can provide the company with more liquidity and flexibility in its operations. However, ongoing monitoring and optimization of the cash conversion cycle will be essential for the company to sustain its operational efficiency and financial health.