John Wiley & Sons (WLY)
Cash ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 83,249 | 106,714 | 100,397 | 93,795 | 202,464 |
| Short-term investments | US$ in thousands | — | 6,400 | 900 | — | — |
| Total current liabilities | US$ in thousands | 873,282 | 895,553 | 969,419 | 988,972 | 927,269 |
| Cash ratio | 0.10 | 0.13 | 0.10 | 0.09 | 0.22 |
April 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($83,249K
+ $—K)
÷ $873,282K
= 0.10
The cash ratio of John Wiley & Sons has shown some fluctuations over the past five years. In the most recent year ending April 30, 2024, the cash ratio stood at 0.10, indicating that the company had $0.10 of cash and cash equivalents for every $1 of current liabilities. This ratio decreased from the previous year's level of 0.13, suggesting a potential decrease in liquidity or a shift in the company's cash management strategy.
Comparing the current cash ratio to the levels observed in earlier years, we see variability in the company's liquidity position. The cash ratio was at its highest in April 2020 at 0.22, signifying a strong liquidity position relative to current liabilities. However, this ratio declined over the subsequent years, reaching its lowest point in April 2021 at 0.09 before slightly increasing again in the subsequent two years.
Overall, the downward trend in the cash ratio from 2020 to 2021 followed by some stabilization raises considerations about the company's ability to meet its short-term obligations solely based on cash reserves. Management may need to monitor and potentially adjust cash management strategies to ensure adequate liquidity to cover upcoming obligations.
Peer comparison
Apr 30, 2024