Apogee Enterprises Inc (APOG)

Apogee Enterprises Inc's liquidity ratios show a fluctuating trend over the data period. The current ratio has varied between 1.47 and 1.82. A current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. The company's current ratio has generally been above 1, indicating a relatively healthy liquidity position.

On the other hand, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has been more volatile. It has ranged from 0.08 to 1.09. A quick ratio above 1 signifies that the company can meet its short-term obligations without relying on selling inventory. While the quick ratio has shown more variability than the current ratio, it generally suggests that the company has been able to meet its short-term obligations without significant reliance on inventory.

Lastly, the cash ratio, which is the most conservative liquidity ratio, tracking only the most liquid assets, has remained relatively stable between 0.08 and 0.22. A cash ratio of 0.22 indicates that the company has cash and cash equivalents to cover 22% of its current liabilities. This ratio reflects the company's ability to pay off its short-term obligations with its most liquid assets.

Overall, the liquidity ratios of Apogee Enterprises Inc suggest that the company has maintained a satisfactory liquidity position over the data period, with the current ratio consistently above 1, indicating the ability to cover short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Apogee Enterprises Inc has shown fluctuations over the period from May 28, 2022, to February 28, 2025. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to convert its investments into cash more quickly.

The trend observed in the data suggests that the company has been able to improve its cash conversion cycle efficiency over time. For instance, the cycle decreased from 44.42 days on May 28, 2022, to 23.87 days on February 28, 2023, showcasing a significant improvement. This trend continued as the cycle further decreased to 22.72 days by August 31, 2023, indicating the company's effort in managing its working capital effectively.

However, there were instances where the cash conversion cycle increased slightly, such as on November 30, 2023, where it rose to 22.84 days compared to the previous period. Despite these fluctuations, the overall trend is positive, with the cycle remaining relatively stable and showing a downward trajectory over the period under review.

Overall, the data suggests that Apogee Enterprises Inc has been successful in managing its cash conversion cycle efficiently, indicating effective management of working capital and liquidity within the company.