Campbell Soup Company Common Stock (CPB)

Campbell Soup Company's liquidity ratios, as reflected in the current ratio, quick ratio, and cash ratio, show fluctuations over the years. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, was below 1 in July 2022 and July 2024, indicating potential liquidity challenges. The ratio improved slightly in July 2023, suggesting better short-term liquidity management.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displayed variability. It was extremely low in July 2022 and July 2024, indicating a potential inability to meet immediate obligations without relying on inventory. The ratio improved in July 2023 but remained relatively low, reflecting ongoing liquidity concerns.

The cash ratio, which specifically assesses the company's ability to cover current liabilities with cash and cash equivalents, showed a similar pattern of fluctuations. While the ratio improved from July 2022 to July 2023, it remained at a relatively low level, suggesting limited liquid reserves compared to current obligations.

Overall, Campbell Soup Company's liquidity ratios indicate inconsistent liquidity management and potential challenges in meeting short-term obligations. Continuous monitoring and improvement in liquidity management practices may be necessary to ensure financial stability and operational continuity.

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Additional liquidity measure

The cash conversion cycle for Campbell Soup Company Common Stock has exhibited fluctuations over the past few years. As of July 31, 2022, the cash conversion cycle stood at 76.63 days, indicating that it took the company approximately 76.63 days to convert its invested cash back into cash received from sales.

Subsequently, there was a notable improvement in the cash conversion cycle by July 30, 2023, where it decreased to 19.95 days. This rapid decrease suggests that the company was able to effectively manage its working capital and convert cash more efficiently during that period.

However, by July 31, 2023, the cash conversion cycle increased significantly to 73.17 days, indicating a potential slowdown in the company's cash conversion efficiency.

The trend continued to fluctuate, as by July 28, 2024, the cash conversion cycle had decreased to 27.06 days. This reduction could signify improved liquidity management or more efficient operating cycles for the company at that point in time.

Finally, as of July 31, 2024, the cash conversion cycle increased slightly to 75.90 days, indicating a potential challenge in converting invested cash back into cash received from sales efficiently during that period.

Overall, the fluctuating nature of Campbell Soup Company Common Stock's cash conversion cycle over the years suggests varying levels of efficiency in managing working capital and converting cash into sales revenue within the business operations.