Cracker Barrel Old Country Store (CBRL)

Cash ratio

		Aug 2, 2024	Apr 26, 2024	Jan 26, 2024	Oct 27, 2023	Jul 28, 2023	Apr 28, 2023	Jan 27, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019
Cash and cash equivalents	US$ in thousands	12,035	11,852	12,602	13,914	25,147	22,452	49,404	38,705	45,105	24,773	79,709	125,865	144,593	384,587	568,839	597,619	436,996	363,330	72,840	43,209
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	83	—
Total current liabilities	US$ in thousands	454,207	446,207	458,837	461,898	488,966	449,223	470,791	469,520	502,324	465,605	478,885	449,647	465,262	448,950	438,703	444,616	451,056	353,426	444,884	442,657
Cash ratio		0.03	0.03	0.03	0.03	0.05	0.05	0.10	0.08	0.09	0.05	0.17	0.28	0.31	0.86	1.30	1.34	0.97	1.03	0.16	0.10

August 2, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,035K + $—K) ÷ $454,207K
= 0.03

The cash ratio of Cracker Barrel Old Country Store has shown fluctuations over the past few years, ranging from 0.03 to 1.34. The cash ratio compares a company's cash and cash equivalents to its current liabilities, providing insight into its ability to cover short-term obligations with its available cash.

From the data provided, it is evident that the cash ratio has generally been on the lower side, indicating that Cracker Barrel may rely more on other sources of liquidity besides cash to meet its short-term obligations. However, there are instances where the cash ratio improved significantly, such as in January 2021 and April 2021, when it reached 0.86 and 1.30 respectively. This suggests that the company had a relatively higher level of cash compared to its current liabilities during those periods.

It is important to note that a cash ratio of less than 1 may raise concerns about a company's liquidity position, as it implies that it does not have sufficient cash to cover its short-term debts if they were all to become due at once. On the other hand, a very high cash ratio may indicate that the company is holding excess cash that could potentially be invested more effectively elsewhere.

Overall, the analysis of Cracker Barrel Old Country Store's cash ratio shows varying levels of liquidity and underscores the importance of monitoring changes in this ratio to assess the company's short-term financial health.