RPM International Inc (RPM)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 237,379 | 215,787 | 201,672 | 246,704 | 233,416 |
| Short-term investments | US$ in thousands | 134,100 | 126,300 | 125,000 | 146,000 | 94,700 |
| Total current liabilities | US$ in thousands | 1,466,060 | 1,490,800 | 2,016,410 | 1,331,410 | 1,093,580 |
| Cash ratio | 0.25 | 0.23 | 0.16 | 0.29 | 0.30 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($237,379K
+ $134,100K)
÷ $1,466,060K
= 0.25
The cash ratio for RPM International Inc has exhibited fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2024, the cash ratio stood at 0.25, indicating that for every dollar of current liabilities, RPM International Inc had $0.25 in cash and cash equivalents. This represents a slight improvement compared to the previous year's ratio of 0.23.
The cash ratio was notably lower in 2022 at 0.16, suggesting a lower level of liquidity relative to its short-term obligations. However, the ratio rebounded in 2023 to 0.29, indicating a stronger position in meeting short-term liabilities with cash on hand.
In 2021 and 2020, the cash ratios were 0.30 and 0.29, respectively, indicating consistent liquidity levels over these two years.
Overall, while the cash ratio has varied over the years, it is important for investors and stakeholders to monitor this ratio to assess RPM International Inc's ability to meet its short-term financial obligations with its cash reserves.
Peer comparison
May 31, 2024