Apogee Enterprises Inc (APOG)
Cash ratio
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 37,216 | 19,924 | 37,583 | 47,277 | 14,952 |
| Short-term investments | US$ in thousands | — | 2,173 | 1,212 | 881 | — |
| Total current liabilities | US$ in thousands | 244,705 | 242,549 | 232,946 | 217,552 | 276,857 |
| Cash ratio | 0.15 | 0.09 | 0.17 | 0.22 | 0.05 |
March 2, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($37,216K
+ $—K)
÷ $244,705K
= 0.15
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. In the case of Apogee Enterprises Inc, the trend of the cash ratio over the past five years shows some fluctuations.
The cash ratio for the most recent year ending March 2, 2024, stands at 0.15, indicating that the company had 15 cents of cash and cash equivalents for every dollar of current liabilities. This suggests that Apogee Enterprises Inc may have some liquidity risk as it may struggle to meet its short-term obligations solely with its available cash.
Comparing this to the previous year, where the cash ratio was 0.09, the company has shown some improvement in its liquidity position. However, when looking at the trend over the past five years, the cash ratio has been somewhat volatile, ranging from 0.05 to 0.22, indicating inconsistent management of the company's liquidity.
In conclusion, while Apogee Enterprises Inc has shown some improvement in its cash ratio in the most recent year, the company may still need to focus on managing its liquidity more effectively to ensure it can meet its short-term obligations in a sustainable manner.