Cracker Barrel Old Country Store (CBRL)

Quick 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	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	—
Receivables	US$ in thousands	49,086	56,508	41,524	32,218	32,508	32,086	36,513	32,943	34,697	52,025	44,637	44,936	48,495	54,568	70,525	48,871	49,009	—	26,685	—
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
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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Cracker Barrel Old Country Store, the quick ratio has exhibited fluctuations over the past few quarters.

The quick ratio for Cracker Barrel has ranged from 0.10 to 1.46 over the past 20 quarters. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets.

In more recent quarters, the quick ratio has been above 1, indicating an improvement in the company's ability to cover its short-term obligations with its liquid assets. The quick ratio peaked at 1.46 in the first quarter of 2021, signaling a strong ability to meet short-term obligations. However, the quick ratio decreased significantly in subsequent quarters but remained above 1, indicating a relatively healthy liquidity position.

It is important to note that a quick ratio above 1 does not necessarily mean the company is in a strong financial position, as it may also signify an inefficient use of assets. Overall, the trend in Cracker Barrel's quick ratio suggests varying levels of liquidity over the quarters, with recent improvements in liquidity but potential fluctuations to monitor going forward.