Academy Sports Outdoors Inc (ASO)

Liquidity ratios

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Current ratio 1.78 1.57 1.66 1.62 1.87 1.87 1.62 1.62 1.68 1.68 1.65 1.65 1.62 1.62 1.57 1.57 1.58 1.58 1.56 1.52
Quick ratio 0.30 0.24 0.30 0.34 0.42 0.40 0.23 0.25 0.31 0.32 0.28 0.29 0.32 0.34 0.27 0.28 0.36 0.37 0.40 0.43
Cash ratio 0.30 0.24 0.30 0.34 0.40 0.40 0.23 0.23 0.31 0.31 0.28 0.28 0.32 0.32 0.27 0.27 0.36 0.36 0.40 0.43

Academy Sports Outdoors Inc's liquidity ratios indicate the company's ability to meet its short-term financial obligations.

1. Current Ratio: The current ratio has been consistently increasing over time, reaching 1.78 as of January 31, 2025. This indicates that the company has $1.78 in current assets for every $1 in current liabilities. A current ratio above 1 suggests that the company is in a healthy financial position to cover its short-term obligations.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures the company's ability to meet short-term obligations using its most liquid assets. Despite some fluctuations, the quick ratio has generally been low, falling to 0.23 as of October 31, 2023. This may indicate that the company relies heavily on inventory to meet its short-term obligations.

3. Cash Ratio: The cash ratio, which is the most conservative liquidity ratio, shows the company's ability to cover its current liabilities with its cash and cash equivalents. The cash ratio has also been relatively low, ranging between 0.23 to 0.43 over the period analyzed. This suggests that the company may not hold a significant amount of cash compared to its current liabilities.

In summary, while the current ratio indicates that Academy Sports Outdoors Inc has improved its liquidity position, the relatively low quick and cash ratios may raise some concerns about the company's ability to quickly cover its short-term obligations without relying on inventory or other less liquid assets. Further analysis and monitoring of these ratios are recommended to assess the company's ongoing liquidity position.

Additional liquidity measure

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Cash conversion cycle days 120.92 126.12 104.88 105.80 48.74 98.50 119.24 54.75 104.65 50.31 103.38 50.28 93.57 44.96 112.94 50.64 100.93 37.66 100.40 81.57

The cash conversion cycle of Academy Sports Outdoors Inc has shown fluctuations over the analyzed period. The cash conversion cycle represents the time it takes for a company to convert its resources invested in inventory and accounts receivable into cash flow from sales.

From the data provided, we observe that the cash conversion cycle ranged between a low of 37.66 days on July 30, 2022, and a high of 126.12 days on October 31, 2024. A lower cash conversion cycle indicates that the company is efficiently managing its working capital, while a higher cycle may suggest inefficiencies in managing inventory, collecting receivables, or delaying payables.

It is notable that the company experienced significant fluctuations in its cash conversion cycle, indicating potential challenges with managing its working capital efficiently across different periods. This volatility may impact the company's liquidity and overall financial performance.

Further detailed analysis, in conjunction with complementary financial metrics and industry benchmarks, would be required to gain a deeper understanding of the factors influencing the cash conversion cycle of Academy Sports Outdoors Inc and to assess the effectiveness of its working capital management strategies over time.