RPM International Inc (RPM)
Quick ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 302,137 | 237,379 | 215,787 | 201,672 | 246,704 |
| Short-term investments | US$ in thousands | — | 6,500 | 5,100 | 6,000 | 3,900 |
| Receivables | US$ in thousands | 1,509,110 | 1,477,280 | 1,503,040 | 1,432,630 | 1,280,810 |
| Total current liabilities | US$ in thousands | 1,467,450 | 1,466,060 | 1,490,800 | 2,016,410 | 1,331,410 |
| Quick ratio | 1.23 | 1.17 | 1.16 | 0.81 | 1.15 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($302,137K
+ $—K
+ $1,509,110K)
÷ $1,467,450K
= 1.23
The analysis of RPM International Inc's quick ratio over the specified period indicates fluctuations in the company's liquidity position. On May 31, 2021, the quick ratio stood at 1.15, suggesting that the company possessed a slightly higher level of liquid assets compared to its current liabilities, reflecting a comfortable short-term liquidity position at that time.
By May 31, 2022, the quick ratio declined substantially to 0.81. This decrease indicates a reduction in liquid assets relative to current liabilities, potentially signaling a weakening in immediate liquidity and a heightened risk of short-term liquidity constraints during that period.
Subsequently, the quick ratio recovered to 1.16 on May 31, 2023, surpassing the earlier level of 2021 and indicating an improvement in liquidity and a sufficient buffer of liquid assets to cover current liabilities. The stability and slight upward movement continued with a value of 1.17 on May 31, 2024, further reinforcing the company's ability to meet short-term obligations without relying on inventory sales.
Looking forward to May 31, 2025, the quick ratio increased modestly to 1.23. This upward trend suggests a continued strengthening in liquidity position, with available liquid assets comfortably exceeding current liabilities. Overall, while there was notable liquidity weakening in 2022, RPM International Inc demonstrated resilience with subsequent recovery and improvement in its quick ratio over the following years, indicating a consistent capacity to meet imminent financial commitments with liquid assets.
Peer comparison
May 31, 2025