RPM International Inc (RPM)
Liquidity ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.97 | 2.29 | 2.33 | 2.45 | 2.14 | 2.75 | 2.57 | 1.99 | 1.56 | 1.45 | 1.86 | 2.33 | 2.09 | 2.25 | 2.17 | 2.25 | 2.22 | 2.41 | 2.40 | 1.61 |
| Quick ratio | 1.22 | 1.10 | 1.19 | 1.31 | 1.24 | 1.25 | 1.22 | 1.04 | 0.87 | 0.73 | 1.02 | 1.32 | 1.26 | 1.26 | 1.30 | 1.39 | 1.34 | 1.30 | 1.38 | 0.95 |
| Cash ratio | 0.25 | 0.21 | 0.21 | 0.19 | 0.23 | 0.17 | 0.18 | 0.19 | 0.16 | 0.17 | 0.23 | 0.31 | 0.29 | 0.35 | 0.34 | 0.33 | 0.30 | 0.31 | 0.31 | 0.21 |
The liquidity ratios of RPM International Inc have shown some fluctuations over the past few quarters.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has varied between 1.45 and 2.75 over the period, indicating that the company has generally had a strong ability to cover its short-term liabilities.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has fluctuated between 0.73 and 1.39. This suggests that the company may have had periods where it faced challenges in meeting immediate obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has ranged from 0.16 to 0.35. This indicates that the company has had a varying ability to cover its short-term liabilities solely with cash on hand.
Overall, while the current ratio has shown a relatively stable trend, the quick and cash ratios have displayed more volatility. It would be important for RPM International Inc to closely monitor these ratios to ensure it maintains a healthy liquidity position to meet its short-term obligations effectively.
Additional liquidity measure
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 88.76 | 81.82 | 86.91 | 95.16 | 101.48 | 103.56 | 109.16 | 105.96 | 103.23 | 93.53 | 93.04 | 93.21 | 92.26 | 87.04 | 89.97 | 94.04 | 96.01 | 92.62 | 97.56 | 100.48 |
The cash conversion cycle of RPM International Inc has shown some fluctuations over the past few fiscal periods. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory back into cash received from customers, has ranged from a low of 81.82 days to a high of 109.16 days.
Overall, the trend in the cash conversion cycle appears to have some variability, with occasional increases and decreases. The company experienced a peak cash conversion cycle of 109.16 days in the Nov 30, 2022 period, indicating a longer time for the company to convert its investments in inventory into cash during that period.
Conversely, the Feb 29, 2024 period saw a decrease in the cash conversion cycle to 81.82 days, reflecting a more efficient conversion of inventory into cash during that time frame.
It is essential for RPM International Inc to effectively manage its cash conversion cycle to optimize cash flow and working capital efficiency, ensuring that the company can meet its short-term obligations and maintain liquidity. Monitoring and analyzing the factors influencing the cash conversion cycle can help the company make informed decisions to improve its financial performance.