Cracker Barrel Old Country Store (CBRL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.61 | 0.63 | 0.58 | 0.62 | 0.58 | 0.61 | 0.66 | 0.71 | 0.63 | 0.63 | 0.64 | 0.79 | 0.76 | 1.32 | 1.82 | 1.86 | 1.43 | 1.58 | 0.64 | 0.66 |
| Quick ratio | 0.13 | 0.15 | 0.12 | 0.10 | 0.12 | 0.12 | 0.18 | 0.15 | 0.16 | 0.16 | 0.26 | 0.38 | 0.42 | 0.98 | 1.46 | 1.45 | 1.08 | 1.03 | 0.22 | 0.10 |
| 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 |
Cracker Barrel Old Country Store's liquidity ratios show fluctuating trends over the recent quarters. The current ratio, which indicates the company's ability to meet short-term obligations with current assets, has generally been below 1, reflecting a potential liquidity risk. The quick ratio, a more stringent measure of liquidity excluding inventory, also remains consistently low, indicating a limited ability to cover immediate liabilities without relying on inventory.
The cash ratio, representing the most stringent measure of liquidity by only considering cash and cash equivalents, fluctuates significantly but generally remains below 0.5, suggesting a potential vulnerability in meeting short-term obligations with cash on hand alone. Overall, these liquidity ratios indicate that Cracker Barrel Old Country Store may face challenges in meeting its short-term financial obligations without relying on inventory or other assets.
Additional liquidity measure
| 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 conversion cycle | days | 7.70 | 11.28 | 9.53 | 12.45 | 6.80 | 10.82 | 11.28 | 17.53 | 10.35 | 16.16 | 9.94 | 9.15 | 6.83 | 11.43 | 14.78 | 11.16 | 13.74 | 10.04 | 8.60 | 6.94 |
The cash conversion cycle of Cracker Barrel Old Country Store fluctuated over the past years, ranging from a low of 6.80 days to a high of 17.53 days. This metric represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates more efficient management of working capital.
Analyzing the trend, we observe some variability in the cash conversion cycle, suggesting fluctuations in inventory management, accounts receivable collection, and accounts payable processes. A longer cash conversion cycle may indicate inefficiencies in managing these components, potentially tying up cash and limiting the company's liquidity.
It is important for Cracker Barrel Old Country Store to closely monitor its cash conversion cycle and work towards optimizing it to maximize cash flow efficiency. This could involve improving inventory turnover, accelerating accounts receivable collections, and extending accounts payable payment terms. By focusing on enhancing these processes, the company can strive to strengthen its financial health and operational efficiency.