Apogee Enterprises Inc (APOG)

Apogee Enterprises Inc's current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown a relatively stable trend over the past few years. The ratio ranged from 1.47 to 1.58 during the period under review, indicating that the company has sufficient current assets to meet its current obligations.

On the other hand, the quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, fluctuated more significantly. The quick ratio ranged from 0.09 to 0.86 during the same period, demonstrating some variability in the company's ability to meet short-term obligations without relying on inventory.

Lastly, the cash ratio, which focuses solely on the most liquid current assets (cash and equivalents) compared to current liabilities, remained relatively stable between 0.09 and 0.16. This indicates that Apogee Enterprises Inc maintains a moderate level of cash reserves relative to its current liabilities.

Overall, based on the liquidity ratios analysis, Apogee Enterprises Inc appears to have a reasonable ability to meet its short-term obligations, with its current ratio providing a more consistent picture of liquidity compared to the quick ratio, which is more sensitive to changes in inventory levels.

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Additional liquidity measure

The cash conversion cycle of Apogee Enterprises Inc has displayed some fluctuations over the years based on the provided data.

In February 25, 2023, the cash conversion cycle was 47.30 days, indicating that it took the company 47.30 days to convert its investments in inventory and other resources into cash flows.

By February 28, 2023, the cash conversion cycle had improved to 25.90 days, suggesting a more efficient management of inventory and receivables, resulting in quicker conversion to cash.

The trend continued to improve as by February 29, 2024, the cash conversion cycle decreased further to 24.20 days, reflecting a more streamlined working capital management process.

However, in March 2, 2024, there was a slight increase in the cash conversion cycle to 39.31 days, which may indicate a temporary slowdown in the company's ability to convert its investments into cash.

By February 28, 2025, the cash conversion cycle had decreased again to 33.65 days, showing a recovery from the previous increase and suggesting a more efficient cash flow cycle.

Overall, the fluctuation in Apogee Enterprises Inc's cash conversion cycle over the years indicates varying efficiency levels in managing inventory, receivables, and payables, which can impact the company's liquidity and financial performance.