Cracker Barrel Old Country Store (CBRL)

Quick ratio

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Cash	US$ in thousands	12,035	25,147	45,105	144,593	436,996
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	49,086	32,508	34,697	48,495	49,009
Total current liabilities	US$ in thousands	454,207	488,966	502,324	465,262	451,056
Quick ratio		0.13	0.12	0.16	0.42	1.08

August 2, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($12,035K + $—K + $49,086K) ÷ $454,207K
= 0.13

The quick ratio of Cracker Barrel Old Country Store has been declining over the past five years, suggesting a decreasing ability to meet its short-term obligations with its most liquid assets. The ratio dropped from 1.08 in 2020 to 0.13 in 2024, indicating a significant reduction in the company's ability to cover its current liabilities with its quick assets such as cash and marketable securities. A quick ratio below 1 may raise concerns about Cracker Barrel's short-term liquidity and ability to pay off debts as they come due. It is essential for the company to closely monitor its liquidity position and potentially take actions to improve its financial health in the short term.