Standex International Corporation (SXI)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 154,203 | 195,706 | 104,844 | 136,367 | 118,809 |
| Short-term investments | US$ in thousands | 4,900 | 3,700 | — | — | — |
| Total current liabilities | US$ in thousands | 127,565 | 140,967 | 150,768 | 143,709 | 122,877 |
| Cash ratio | 1.25 | 1.41 | 0.70 | 0.95 | 0.97 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($154,203K
+ $4,900K)
÷ $127,565K
= 1.25
The cash ratio is a financial ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Analyzing the cash ratio of Standex International Corporation over the past five years, we can see a fluctuating trend. In 2024, the cash ratio stands at 1.25, showing a slight decrease from the previous year. This indicates that the company has $1.25 of cash and cash equivalents for every $1 of current liabilities.
The cash ratio was at its highest in 2023 at 1.41, indicating an improvement in the company's liquidity position. However, in 2022, the ratio dropped significantly to 0.70, which could be a cause for concern as it suggests the company may have had insufficient cash to cover its short-term obligations.
In 2021 and 2020, the cash ratio was 0.95 and 0.97 respectively, showing a relatively stable position in terms of liquidity for those years.
Overall, while the cash ratio has shown fluctuations over the years, the company appears to have maintained a reasonable level of liquidity to cover its short-term liabilities. Further analysis of the company's cash management policies and cash flow generation may provide additional insights into its liquidity position.
Peer comparison
Jun 30, 2024