Albertsons Companies (ACI)
Quick ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 293,600 | 202,300 | 280,000 | 295,300 | 193,200 | 222,700 | 266,100 | 225,200 | 455,800 | 4,412,300 | 3,400,400 | 3,213,100 | 2,902,000 | 2,661,000 | 2,849,800 | 2,173,800 | 1,717,000 | 1,836,100 | 2,389,600 | 2,022,200 |
| Short-term investments | US$ in thousands | — | — | 17,200 | 22,000 | 23,300 | 20,000 | 18,200 | 19,000 | 21,400 | 20,800 | 18,000 | 17,200 | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 834,800 | 929,000 | 897,600 | 809,400 | 724,400 | 828,400 | 710,100 | 684,300 | 687,600 | 704,800 | 651,700 | 565,300 | 560,600 | 607,400 | 544,700 | 618,700 | 550,900 | 549,500 | 547,100 | 530,000 |
| Total current liabilities | US$ in thousands | 7,251,000 | 7,155,100 | 7,422,400 | 7,066,000 | 7,457,700 | 7,857,500 | 7,923,500 | 7,723,100 | 8,428,800 | 13,309,000 | 8,244,500 | 7,912,300 | 8,348,500 | 7,461,200 | 7,069,700 | 6,704,200 | 6,832,200 | 6,597,300 | 6,727,700 | 6,750,300 |
| Quick ratio | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.14 | 0.13 | 0.12 | 0.14 | 0.39 | 0.49 | 0.48 | 0.41 | 0.44 | 0.48 | 0.42 | 0.33 | 0.36 | 0.44 | 0.38 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($293,600K
+ $—K
+ $834,800K)
÷ $7,251,000K
= 0.16
The analysis of Albertsons Companies' quick ratio over the specified period reveals notable trends and fluctuations, reflecting changes in the company's liquidity position. The quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets (excluding inventories), largely remains below 0.5 throughout the analyzed timeframe.
Between May 31, 2020, and August 31, 2021, the quick ratio experienced a gradual upward trajectory, moving from 0.38 to a peak of 0.49. This period indicates an improving liquidity position, with the company increasing its liquid assets relative to current liabilities. Such improvements may have been driven by better cash management, reduction in current liabilities, or increased liquid assets.
However, from November 30, 2021, onwards, the ratio experienced a decline, falling to approximately 0.39 by November 2022, suggesting a diminishing liquidity cushion. The most significant drop is observed between November 30, 2022, and February 28, 2023, when the ratio sharply decreased from 0.39 to approximately 0.14. This precipitous decline indicates a substantial reduction in liquid assets relative to current liabilities, hinting at potential liquidity strains or increased short-term obligations during this period.
Following this sharp decrease, the ratio stabilizes at a low level, fluctuating marginally between 0.12 and 0.16 from May 2023 onward. The consistent maintenance of the ratio around 0.13 to 0.16 suggests persistent challenges in maintaining high liquidity levels and indicates that the company's ability to quickly cover its short-term liabilities with liquid assets has been limited in recent years.
In summary, the historical data demonstrates an initial period of improvement in liquidity up to late 2021, followed by a significant decline starting in early 2023. The current quick ratio levels imply that Albertsons Companies has maintained a relatively low liquidity buffer in recent periods, which could impact its short-term financial flexibility and risk management capabilities.
Peer comparison
Feb 28, 2025