Albertsons Companies (ACI)
Cash ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 293,600 | 188,700 | 455,800 | 2,902,000 | 1,717,000 |
| Short-term investments | US$ in thousands | — | 23,300 | 21,400 | 14,400 | 11,900 |
| Total current liabilities | US$ in thousands | 7,251,000 | 7,457,700 | 8,428,800 | 8,348,500 | 6,832,200 |
| Cash ratio | 0.04 | 0.03 | 0.06 | 0.35 | 0.25 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($293,600K
+ $—K)
÷ $7,251,000K
= 0.04
The cash ratio of Albertsons Companies over the specified periods demonstrates notable fluctuations, reflecting changes in the company's liquidity position. As of February 28, 2021, the cash ratio stood at 0.25, indicating that Albertsons had sufficient cash and cash equivalents to cover approximately 25% of its current liabilities, suggesting a relatively cautious liquidity stance at that time. By February 28, 2022, the cash ratio increased to 0.35, signifying an improvement and enhanced liquidity buffer, with cash and cash equivalents covering approximately 35% of current liabilities.
However, the subsequent period shows a dramatic decline. As of February 28, 2023, the cash ratio contracted sharply to 0.06, indicating that cash and cash equivalents could only meet about 6% of current liabilities. This substantial decrease suggests a significant reduction in immediate liquidity or a shift in balance sheet composition, possibly due to increased reliance on other current assets or greater current liabilities. The downward trend persists into February 29, 2024, where the cash ratio further dropped to 0.03, implying an even more limited cash cushion for immediate obligations. Slight recovery is visible by February 28, 2025, with the ratio rising modestly to 0.04, but still remaining markedly low relative to earlier periods.
Overall, the data reveals a pronounced decline in Albertsons Companies' cash ratio over the analyzed timeframe, highlighting a diminished capacity to meet current liabilities through cash and cash equivalents alone. This trend may point to potential liquidity challenges or strategic shifts in asset management, emphasizing the importance of further analysis into the company's liquidity management and overall financial health.
Peer comparison
Feb 28, 2025