RPM International Inc (RPM)
Quick ratio
| 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 | US$ in thousands | 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 | 233,416 | 212,242 | 208,173 | 212,091 |
| Short-term investments | US$ in thousands | 134,100 | — | — | — | 126,300 | — | — | 114,185 | 125,000 | 137,513 | 143,412 | 148,656 | 146,000 | 127,140 | 116,309 | 106,758 | 94,700 | 89,215 | 97,798 | 107,200 |
| Receivables | US$ in thousands | 1,419,440 | 1,072,030 | 1,233,340 | 1,418,890 | 1,503,040 | 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 | 1,137,960 | 948,351 | 1,047,810 | 1,109,260 |
| Total current liabilities | US$ in thousands | 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 | 1,093,580 | 962,131 | 984,068 | 1,496,570 |
| 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 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($237,379K
+ $134,100K
+ $1,419,440K)
÷ $1,466,060K
= 1.22
The quick ratio of RPM International Inc has fluctuated over the past few years, indicating variability in the company's ability to cover its short-term liabilities with its most liquid assets.
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its liquid assets excluding inventory. A quick ratio of 1 or higher is generally considered acceptable, as it suggests the company has enough liquid assets to cover its current liabilities.
In the most recent period, the quick ratio was 1.22, indicating that the company had $1.22 in liquid assets for every $1 in current liabilities. This suggests a healthy liquidity position.
Looking at the trend over the past few periods, we see some fluctuation in the quick ratio. The ratio was above 1 in most periods, indicating that RPM International Inc generally had a comfortable cushion of liquid assets to cover its short-term obligations. However, there were periods where the quick ratio dipped below 1, such as in May 2022 and May 2020, suggesting a tighter liquidity position and potential difficulty in meeting short-term obligations during those periods.
Overall, while there has been some variability in the quick ratio, the recent ratio of 1.22 indicates that RPM International Inc currently has a solid liquidity position and should be able to meet its short-term obligations effectively. It is important for the company to monitor its liquidity position closely to ensure it can continue to operate smoothly and manage its financial obligations.
Peer comparison
May 31, 2024