Apogee Enterprises Inc (APOG)

The liquidity ratios of Apogee Enterprises Inc indicate its ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable over the past few quarters, ranging from 1.45 to 1.82. A ratio above 1 indicates the company can meet its current obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown stability, albeit at lower levels compared to the current ratio. Apogee's quick ratio has ranged from 0.44 to 1.12, suggesting the company may face challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents in the numerator, has displayed more variability. Apogee's cash ratio has fluctuated between 0.03 and 0.36, indicating the company's ability to pay off its short-term liabilities solely with cash on hand has varied significantly.

Overall, while Apogee Enterprises Inc's current ratio suggests it generally has sufficient current assets to cover its short-term liabilities, the quick and cash ratios show a more nuanced picture of its liquidity position. It is important for the company to closely monitor its liquidity metrics, particularly the quick and cash ratios, to ensure it can meet its short-term financial obligations even in challenging circumstances.

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Additional liquidity measure

The cash conversion cycle of Apogee Enterprises Inc has exhibited fluctuations over time, reflecting changes in the company's efficiency in managing its working capital. The cycle measures the time taken to convert inventory and accounts receivable into cash, indicating the effectiveness of the company's operations and its ability to generate cash.

In recent periods, the cash conversion cycle has ranged from 20.51 days to 54.78 days. A shorter cycle indicates that Apogee is able to quickly convert its investments in inventory and accounts receivable into cash, which is generally more favorable as it implies faster liquidity and better working capital management.

The highest cash conversion cycle of 54.78 days was observed on Nov 30, 2019, which may suggest potential inefficiencies in inventory management or delays in collecting receivables during that period. Conversely, the lowest cycle of 1.40 days on Jun 1, 2019, indicates a very efficient working capital management process, possibly due to streamlined operations or improved collections strategy.

Overall, the trend in Apogee's cash conversion cycle indicates some variability over time, highlighting the importance of monitoring working capital efficiency to ensure optimal cash flow and operational performance. It may be beneficial for the company to focus on maintaining a consistent and efficient cash conversion cycle to support its financial health and stability.