Acuity Brands Inc (AYI)

Liquidity ratios

	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Current ratio	2.72	2.77	2.59	2.45	2.34	2.26	2.34	2.09	2.00	1.86	2.25	2.30	2.23	2.29	2.33	2.31	2.33	2.40	2.29	2.11
Quick ratio	2.05	2.00	1.80	1.72	1.60	1.45	1.45	1.24	1.21	1.06	1.37	1.49	1.54	1.64	1.64	1.63	1.72	1.69	1.55	1.35
Cash ratio	1.23	1.15	0.97	0.85	0.67	0.58	0.57	0.41	0.30	0.37	0.64	0.72	0.71	0.88	0.87	0.87	0.91	0.90	0.67	0.47

Acuity Brands Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have displayed varying trends over the past few quarters. The current ratio has generally been above 2.00, indicating the company's ability to meet its short-term obligations with its current assets. The ratio has shown a slight fluctuation but has remained relatively stable.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also generally been above 1.00. This indicates that the company has an adequate level of liquid assets to cover its short-term liabilities without relying on selling inventory. Similar to the current ratio, the quick ratio has displayed some fluctuations but has shown overall stability.

Lastly, the cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has shown a gradual increase over the quarters. This signifies that Acuity Brands Inc has been improving its ability to cover its current liabilities with its readily available cash resources.

Overall, Acuity Brands Inc's liquidity ratios suggest that the company has maintained a strong liquidity position, with the ability to meet its short-term obligations efficiently over the past few quarters. It is important for investors and analysts to continue monitoring these ratios to ensure the company's ongoing ability to meet its financial commitments.

Additional liquidity measure

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cash conversion cycle	days	57.62	54.65	53.09	54.68	60.33	55.17	57.94	59.90	70.15	74.32	64.01	58.56	61.49	53.98	50.44	49.29	54.12	51.63	53.87	55.38

The cash conversion cycle of Acuity Brands Inc has fluctuated over the analyzed periods, ranging from 49.29 days to 74.32 days. The company's cash conversion cycle indicates the time it takes to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle is generally favorable as it represents quicker turnover of assets and cash conversion efficiency.

Analyzing Acuity Brands' cash conversion cycle trend reveals some volatility in the company's operational efficiency in managing working capital. There seems to be some seasonality or periodic fluctuations in the company's cash conversion cycle, indicated by the varying values in the data set. It is essential for the company to monitor and manage this metric effectively to ensure optimal cash flow management and working capital efficiency.

Overall, the company should focus on streamlining its inventory management, accounts receivable collection, and accounts payable processes to reduce the cash conversion cycle duration and improve overall operational efficiency and liquidity. Further analysis of the underlying factors contributing to the fluctuations in the cycle may provide insights for implementing operational improvements.