Advanced Drainage Systems Inc (WMS)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 463,319 | 490,163 | 217,128 | 20,125 | 195,009 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 398,396 | 439,622 | 378,802 | 391,241 | 318,270 |
| Cash ratio | 1.16 | 1.11 | 0.57 | 0.05 | 0.61 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($463,319K
+ $—K)
÷ $398,396K
= 1.16
The cash ratio of Advanced Drainage Systems Inc has fluctuated over the past five years, showing varying levels of liquidity. As of March 31, 2021, the company had a cash ratio of 0.61, indicating that it had $0.61 in cash and cash equivalents for every $1 of current liabilities. However, by March 31, 2022, the cash ratio significantly decreased to 0.05, reflecting a potential decline in the company's liquidity position.
In the subsequent years, the cash ratio improved, reaching 0.57 by March 31, 2023. This suggests that the company managed to increase its cash and cash equivalents relative to its short-term obligations. The trend continued positively, with the cash ratio rising to 1.11 by March 31, 2024, and further improving to 1.16 by March 31, 2025.
Overall, the increasing trend in the cash ratio from 2022 to 2025 indicates that Advanced Drainage Systems Inc enhanced its liquidity position over time, ensuring a stronger ability to meet its short-term financial commitments using its available cash resources.