Apogee Enterprises Inc (APOG)
Quick ratio
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 37,216 | 19,924 | 37,583 | 47,277 | 14,952 |
| Short-term investments | US$ in thousands | — | 2,173 | 1,212 | 881 | — |
| Receivables | US$ in thousands | 173,557 | 197,267 | 168,592 | 175,917 | 196,806 |
| Total current liabilities | US$ in thousands | 244,705 | 242,549 | 232,946 | 217,552 | 276,857 |
| Quick ratio | 0.86 | 0.90 | 0.89 | 1.03 | 0.76 |
March 2, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($37,216K
+ $—K
+ $173,557K)
÷ $244,705K
= 0.86
The quick ratio measures Apogee Enterprises Inc's ability to meet its short-term obligations with its most liquid assets excluding inventory. Over the past five years, the quick ratio has fluctuated within a relatively narrow range, ranging from 0.76 to 1.03.
The quick ratio of 0.86 as of March 2, 2024, indicates that the company may have slightly more difficulty meeting its short-term obligations using only its quick assets compared to the previous year. However, it is important to note that a quick ratio above 1.0 is generally considered healthy as it suggests the firm has enough liquid assets to cover its short-term liabilities without relying on inventory.
Despite the slight decrease from the prior year, Apogee Enterprises Inc's quick ratio remains within an acceptable range, although management may want to monitor it closely to ensure the company maintains sufficient liquidity to meet its short-term obligations.