ConAgra Foods Inc (CAG)

Liquidity ratios

May 26, 2024 Feb 25, 2024 Nov 26, 2023 Aug 27, 2023 May 28, 2023 Feb 26, 2023 Nov 27, 2022 Aug 28, 2022 May 29, 2022 Feb 27, 2022 Nov 28, 2021 Aug 29, 2021 May 30, 2021 Feb 28, 2021 Nov 29, 2020 Aug 30, 2020 May 31, 2020 Feb 23, 2020 Nov 24, 2019 Aug 25, 2019
Current ratio 0.97 0.95 0.91 0.91 0.76 0.97 0.92 0.78 0.86 0.83 0.93 0.96 0.82 0.80 0.83 0.95 0.88 0.87 0.88 1.11
Quick ratio 0.29 0.29 0.27 0.27 0.24 0.29 0.26 0.21 0.27 0.28 0.32 0.29 0.26 0.28 0.30 0.40 0.43 0.30 0.33 0.34
Cash ratio 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.14 0.17 0.03 0.06 0.03

The liquidity ratios of ConAgra Foods Inc indicate the company's ability to meet its short-term obligations.

The current ratio has fluctuated over the periods provided, ranging from 0.76 to 0.97. This ratio measures the company's ability to cover its current liabilities with its current assets. A ratio below 1 suggests that the company may have difficulty meeting its short-term obligations. ConAgra's current ratio has been below 1 for several periods, indicating potential liquidity challenges.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. ConAgra's quick ratio has also fluctuated but generally stayed below 1, ranging from 0.21 to 0.43. This suggests that the company may struggle to meet its short-term liabilities without relying on inventory.

The cash ratio, which is the most conservative liquidity measure, reflects the company's ability to cover its current liabilities with cash and cash equivalents. ConAgra's cash ratio has remained very low, with values between 0.01 and 0.17. This indicates that the company holds minimal cash relative to its current liabilities, which could point to potential cash flow challenges.

Overall, the liquidity ratios of ConAgra Foods Inc suggest that the company may have faced liquidity issues in the periods analyzed, as indicated by consistently low current, quick, and cash ratios. The company may need to closely monitor its short-term liquidity position to ensure it can meet its obligations as they come due.


Additional liquidity measure

May 26, 2024 Feb 25, 2024 Nov 26, 2023 Aug 27, 2023 May 28, 2023 Feb 26, 2023 Nov 27, 2022 Aug 28, 2022 May 29, 2022 Feb 27, 2022 Nov 28, 2021 Aug 29, 2021 May 30, 2021 Feb 28, 2021 Nov 29, 2020 Aug 30, 2020 May 31, 2020 Feb 23, 2020 Nov 24, 2019 Aug 25, 2019
Cash conversion cycle days 44.94 52.57 56.74 58.17 50.23 53.45 52.63 37.46 31.92 36.42 42.35 38.65 28.88 31.79 31.89 28.91 24.25 42.45 46.77 46.35

The cash conversion cycle of ConAgra Foods Inc, which measures the time it takes for the company to convert its investments in inventory into cash from sales, has exhibited some fluctuations over the past several quarters.

The company's cash conversion cycle has ranged from a low of 24.25 days to a high of 58.17 days. Generally, a shorter cash conversion cycle is favored as it indicates that the company is able to efficiently manage its working capital and generate cash from its operations more quickly.

Looking at the trend, we observed that the cash conversion cycle was relatively stable in the mid-20s to mid-30s days range until there was a notable increase in late 2022 and early 2023, with the cycle exceeding 50 days. This extended cycle duration could suggest potential issues with inventory management, slow collection of receivables, or longer payment terms with suppliers during that period.

The company managed to reduce the cycle duration back to the mid-30s range in the most recent quarters, indicating improvements in working capital management. However, it is important for ConAgra Foods Inc to monitor and potentially address any fluctuations in the cash conversion cycle to ensure efficient use of its resources and maintain a healthy cash flow position.