ConAgra Foods Inc (CAG)

ConAgra Foods Inc's liquidity ratios show a fluctuating trend over the reported periods.

1. Current Ratio: The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, declined from 0.86 on May 31, 2022, to a low of 0.69 on February 28, 2025. However, it generally remained below 1, indicating that ConAgra may have had difficulties meeting its short-term obligations with its current assets during this period.

2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed instability. It ranged from a low of 0.01 on November 30, 2022, to a high of 0.29 on multiple occasions. This indicates that ConAgra's ability to cover its immediate liabilities with its most liquid assets fluctuated significantly over the reporting periods.

3. Cash Ratio: The cash ratio, which represents the proportion of cash and cash equivalents to current liabilities, remained relatively stable between 0.01 and 0.04 across the reporting periods. This suggests that ConAgra had a consistent ability to settle its short-term obligations with its available cash reserves.

In conclusion, ConAgra Foods Inc's liquidity position appears to have been challenged during the reported periods, as indicated by the consistently low current ratios and fluctuating quick ratios. Continuous monitoring and management of liquidity will be crucial for the company to ensure it can meet its short-term financial obligations effectively.

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Additional liquidity measure

The cash conversion cycle of ConAgra Foods Inc fluctuated over the periods indicated in the data provided. The cycle represents the time it takes for a company to convert its investment in inventory and other resources into cash receipts from customers.

From May 31, 2022, to August 28, 2022, the cash conversion cycle decreased significantly from 73.52 days to 38.34 days, indicating an improvement in the company's efficiency in managing its working capital. However, the cycle increased again to 78.31 days by August 31, 2022, before fluctuating in the subsequent periods.

The cycle continued to vary over the following quarters, with fluctuations between 54.17 days and 84.09 days up to February 28, 2025. These fluctuations suggest potential challenges or changes in ConAgra Foods Inc's supply chain efficiency, inventory management, and collection of receivables.

Overall, a lower cash conversion cycle implies that the company may be able to generate cash more quickly from its operations, while a longer cycle may indicate inefficiencies in managing working capital. It would be important for investors and stakeholders to closely monitor ConAgra Foods Inc's cash conversion cycle trends to assess its operational efficiency and liquidity management.