ConAgra Foods Inc (CAG)
Liquidity ratios
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Current ratio | 0.97 | 0.97 | 0.76 | 0.76 | 0.86 |
| Quick ratio | 0.02 | 0.29 | 0.02 | 0.24 | 0.02 |
| Cash ratio | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
ConAgra Foods Inc's liquidity ratios show mixed results over the given period. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, improved from 0.86 in May 31, 2022, to 0.97 in May 26, 2024. This indicates that ConAgra's ability to meet its short-term obligations has strengthened.
On the other hand, the quick ratio, reflecting the company's ability to meet short-term obligations with its most liquid assets, increased from 0.02 in May 31, 2022, to 0.29 in May 26, 2024. This improvement suggests that ConAgra has become more efficient in meeting its immediate financial commitments.
Lastly, the cash ratio, which measures a company's ability to cover current liabilities with only cash and cash equivalents, remained constant at 0.02 throughout the period. While this indicates that ConAgra maintains a consistent level of cash reserves relative to its short-term obligations, further analysis is needed to assess the adequacy of its cash holdings for potential liquidity needs.
Overall, ConAgra Foods Inc's liquidity position appears stable, with improvements in current and quick ratios indicating enhanced ability to meet short-term obligations.
Additional liquidity measure
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 87.21 | 44.89 | 89.60 | 50.22 | 82.54 |
The cash conversion cycle for ConAgra Foods Inc has shown fluctuations over the past few years. In May 2022, the cash conversion cycle was at 82.54 days, which decreased significantly to 50.22 days by May 2023. However, by May 2024, the cycle increased to 87.21 days.
Overall, the company's cash conversion cycle has been somewhat volatile, indicating changes in its ability to efficiently convert its investments in inventory and receivables into cash. It is essential for ConAgra Foods Inc to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and operational efficiency.