Standex International Corporation (SXI)
Liquidity ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.37 | 3.43 | 2.51 | 2.61 | 2.70 |
| Quick ratio | 2.20 | 2.30 | 1.52 | 1.80 | 1.83 |
| Cash ratio | 1.25 | 1.41 | 0.70 | 0.95 | 0.97 |
Standex International Corporation's liquidity ratios show an improving trend over the past five years, indicating the company's ability to meet its short-term obligations. The current ratio has consistently been above 2.5x, reaching 3.37x as of June 30, 2024, which indicates that the company has more than enough current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a positive trend, increasing from 1.52x in 2022 to 2.20x in 2024. This suggests that the company has a strong ability to meet its short-term obligations without relying on selling inventory.
Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has improved significantly over the years. Standex International Corporation's cash ratio has more than doubled since 2022, reaching 1.25x in 2024, indicating a healthier cash position.
Overall, Standex International Corporation's liquidity ratios indicate a strong financial position with ample resources to meet its short-term obligations, which is a positive sign for investors, creditors, and other stakeholders.
Additional liquidity measure
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 75.45 | 73.88 | 79.09 | 80.72 | 92.47 |
The cash conversion cycle of Standex International Corporation has varied over the past five years. In the most recent fiscal year ending June 30, 2024, the company's cash conversion cycle decreased to 75.45 days from 73.88 days in the previous year. This suggests that Standex has been able to manage its working capital more efficiently, resulting in a quicker conversion of inventory to cash.
Comparing the data to two years prior, the company has shown a significant improvement as the cash conversion cycle was 92.47 days in June 2020. This indicates that Standex has made progress in managing its cash flows and working capital needs more effectively over the past few years.
Overall, the trend in Standex's cash conversion cycle reflects a positive performance in working capital management, leading to a smoother cash flow cycle and potentially improved liquidity for the company.