Campbell’s Co (CPB)

The liquidity ratios of Campbell’s Co over the specified periods reveal notable changes in the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover current liabilities with current assets, was stable at 0.93 on both July 30 and July 31, 2023. However, this ratio declined significantly to 0.61 by July 28 and July 31, 2024, indicating a weakening in short-term liquidity. Although there was a moderate recovery to 0.77 by July 31, 2025, the ratio remains below the ideal benchmark of 1.0, suggesting that current assets are not fully sufficient to cover current liabilities during this period.

The quick ratio, which assesses immediate liquidity by excluding inventory from current assets, followed a similar downward trend. Starting at 0.32 in both July 30 and July 31, 2023, it decreased sharply to 0.21 on July 28 and July 31, 2024, reflecting reduced capability to settle short-term obligations without relying on selling inventory. A further decline to 0.05 by July 31, 2025, indicates an even more strained liquidity position, with the company's most liquid assets barely covering current liabilities.

The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents, was 0.09 on July 30 and July 31, 2023. This ratio fell markedly to 0.03 on July 28 and July 31, 2024, before showing a slight increase back to 0.05 by July 31, 2025. The consistently low cash ratio across periods signifies that Campbell’s Co maintains limited cash reserves relative to its current liabilities, which could pose challenges in meeting immediate financial commitments.

In summary, the reviewed liquidity ratios indicate a weakening liquidity position over the analyzed period. The declining current and quick ratios suggest that the company's short-term solvency has deteriorated, with increasingly limited liquid assets available to settle short-term liabilities. The persistently low cash ratio further underscores the company's reliance on non-cash current assets, such as inventory or receivables, to meet its short-term obligations. These trends warrant careful monitoring, as sustained low liquidity could impact the company’s operational stability and financial flexibility.

---

Additional liquidity measure

The analysis of Campbell’s Co cash conversion cycle (CCC) over the specified periods indicates notable fluctuations. As of July 30, 2023, the CCC was approximately 19.95 days, and it slightly decreased to 19.79 days by July 31, 2023, suggesting a marginal improvement in the company's operational efficiency within that period. However, a significant change is observed over the subsequent year; by July 28, 2024, the CCC increased to approximately 27.06 days, and it further rose to 27.97 days as of July 31, 2024. This upward trend reflects a lengthening of the time taken for the company to convert its investments in inventory and receivables into cash, potentially indicating slower inventory turnover or extended receivables collection periods, or delays in supplier payments.

By July 31, 2025, the CCC is reported as 0.00 days, a notable anomaly or possible data recording issue, as it suggests an instantaneous conversion of cash, which is typically unlikely in operational contexts. This could imply that the company has achieved an exceedingly efficient cash cycle, potentially through strategic operational improvements, or it may reflect a data entry anomaly or a change in reporting methodology.

Overall, the trend from 2023 to 2024 shows an increasing cash conversion cycle, signaling a period of decreased operational efficiency or longer working capital cycles, whereas the 2025 figure indicates a substantial shift or data irregularity needing further validation.