RPM International Inc (RPM)
Quick ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 302,137 | 241,895 | 268,683 | 231,555 | 237,379 | 248,905 | 262,746 | 240,586 | 215,787 | 193,870 | 232,118 | 197,574 | 201,672 | 193,191 | 192,851 | 213,212 | 246,704 | 249,214 | 272,945 | 251,765 |
| Short-term investments | US$ in thousands | — | — | — | — | 6,500 | — | — | — | 5,100 | — | — | — | 6,000 | — | — | — | 3,900 | — | — | — |
| Receivables | US$ in thousands | 1,509,110 | 1,105,080 | 1,290,540 | 1,344,180 | 1,477,280 | 1,121,810 | 1,285,940 | 1,418,890 | 1,552,230 | 1,203,210 | 1,340,130 | 1,407,870 | 1,432,630 | 1,085,400 | 1,173,490 | 1,171,910 | 1,280,810 | 998,783 | 1,081,840 | 1,159,130 |
| Total current liabilities | US$ in thousands | 1,467,450 | 1,243,460 | 1,293,890 | 1,282,580 | 1,466,060 | 1,201,950 | 1,254,360 | 1,268,650 | 1,490,800 | 1,119,510 | 1,290,030 | 1,649,250 | 2,016,410 | 1,934,900 | 1,483,590 | 1,163,620 | 1,331,410 | 1,087,500 | 1,132,690 | 1,092,780 |
| Quick ratio | 1.23 | 1.08 | 1.21 | 1.23 | 1.17 | 1.14 | 1.23 | 1.31 | 1.19 | 1.25 | 1.22 | 0.97 | 0.81 | 0.66 | 0.92 | 1.19 | 1.15 | 1.15 | 1.20 | 1.29 |
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 quick ratio of RPM International Inc. has exhibited some fluctuations over the analyzed period from August 2020 to May 2025. Initially, at the end of August 2020, the quick ratio stood at 1.29, indicating that the company's liquid assets were 1.29 times its current liabilities, reflecting a comfortable liquidity position.
Over the subsequent months, the ratio experienced a gradual decline, reaching a low of 0.66 by February 2022. This drop suggests a decrease in the company's liquidity cushion, potentially due to an increase in current liabilities or a reduction in liquid assets, which could influence the firm's ability to meet short-term obligations without relying on inventory sales.
Following this low point, the quick ratio demonstrated a recovery trend, rising to 1.22 by November 2022 and further to approximately 1.31 in August 2023. These increases imply an improvement in liquidity, with the firm restoring its capacity to cover current liabilities with its most liquid assets.
From late 2023 into 2025, the ratio maintained relative stability around the 1.2 mark, with minor fluctuations. For instance, it was 1.23 in November 2023, dipped slightly to 1.14 in February 2024, then increased again to approximately 1.23 by May 2025. These variations indicate consistent management of liquid assets and liabilities, maintaining a solid liquidity position without significant risk of short-term liquidity shortages.
Overall, the company's quick ratio has transitioned from a strong position in 2020 to a more challenged liquidity state around early 2022, followed by a recovery phase. The ratios throughout reflect a generally stable liquidity profile in the latter part of the observed period, sustaining a level above 1.0, which is typically regarded as a healthy indicator of liquidity adequacy.
Peer comparison
May 31, 2025