Apogee Enterprises Inc (APOG)

Looking at the liquidity ratios of Apogee Enterprises Inc over the past five years, we can see some fluctuations in the performance of the company:

1. Current Ratio:
The current ratio measures the company's ability to pay its short-term obligations with its current assets. Apogee Enterprises Inc's current ratio has fluctuated between 1.38 and 1.61 over the past five years. In general, a current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign. However, a decreasing trend in the current ratio over the years could suggest that the company's short-term liquidity position has weakened.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative measure of liquidity. Apogee Enterprises Inc's quick ratio has ranged from 0.76 to 1.03 over the past five years. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations without selling inventory. The slight fluctuations in the quick ratio may signify changes in the composition of current assets over the years.

3. Cash Ratio:
The cash ratio is the most conservative liquidity ratio as it only considers cash and cash equivalents as a percentage of current liabilities. Apogee Enterprises Inc's cash ratio has varied from 0.05 to 0.22 over the past five years. A cash ratio below 1 indicates that the company may not have enough cash on hand to cover its current liabilities. The significant increase in the cash ratio from 2020 to 2021 suggests an improvement in the company's ability to meet its short-term obligations with cash.

In summary, while Apogee Enterprises Inc's liquidity ratios show some fluctuations, it is important to monitor these ratios over time to assess the company's ability to meet its short-term financial obligations and manage liquidity effectively.

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Additional liquidity measure

The cash conversion cycle of Apogee Enterprises Inc has shown fluctuations over the past five years. In the fiscal year ending March 2, 2024, the company's cash conversion cycle has decreased to 39.31 days from 47.30 days in the previous year, indicating an improvement in the efficiency of the company's working capital management.

Comparing the current cycle to the data from previous years:
- In the fiscal year ending Feb 25, 2023, the cash conversion cycle was 47.30 days, which decreased from 42.76 days in the fiscal year ending Feb 26, 2022.
- The company's cash conversion cycle was 42.76 days in the fiscal year ending Feb 26, 2022, which was lower than the 50.88 days recorded in the fiscal year ending Feb 27, 2021.
- In the fiscal year ending Feb 27, 2021, the cash conversion cycle was 50.88 days, which had decreased from 52.47 days in the fiscal year ending Feb 29, 2020.

Overall, the trend in the cash conversion cycle of Apogee Enterprises Inc has shown some variability, but the recent decrease indicates an improvement in the company's ability to efficiently manage its working capital and convert its investments in inventory and receivables into cash.