Campbell’s Co (CPB)

The liquidity ratios for Campbell’s Co over the specified period illustrate a notable improvement followed by subsequent fluctuation.

Starting with the current ratio, the company demonstrated a low position of 0.68 as of July 31, 2022. This ratio gradually increased over the subsequent quarters, reaching a peak of 1.01 in January 2024. This upward trend indicates an improving ability to cover short-term liabilities with current assets, suggesting enhanced liquidity management and possibly better operational performance. The current ratio then declined sharply in the subsequent quarter to 0.62 as of April 2024, and further down to 0.61 by July 2024, indicating a deterioration in short-term liquidity. However, the ratio improved again in the later periods, reaching 0.93 by October 2024 and remaining relatively stable near that level through early 2025, with a slight decrease to 0.93, signaling a recovery but still below the generally accepted benchmark of 1.0, which typically indicates a fully liquid position.

The quick ratio (acid-test ratio) followed a similar trajectory, starting from 0.23 in July 2022 and showing a steady increase to 0.39 in January 2024. This ratio remained below 0.5 throughout the period, indicating that the company's liquid assets excluding inventory are not sufficient to cover short-term liabilities fully, reflecting a cautious liquidity stance. The ratio saw a significant jump to 0.48 in October 2024, then remained in the 0.28 to 0.45 range into 2025, but it did not reach levels indicating strong immediate liquidity, suggesting a persistent tight liquidity position relative to immediate obligations.

The cash ratio, representing the most conservative measure of liquidity, remained very low throughout the period. It was 0.04 in July 2022 and gradually increased to 0.08 in early 2024. However, the ratio fluctuated, notably dropping back to 0.03 from April 2024 through July 2024. The ratio saw a notable increase to 0.23 in October 2024, and then stabilized around 0.05 to 0.24 into 2025. Despite improvements at certain points, the cash ratio lingered well below 1.0, indicating that the company generally maintains a cash position insufficient to cover short-term liabilities solely with cash and cash equivalents.

Overall, the analysis indicates that Campbell’s Co has experienced periods of improving liquidity, particularly around January 2024, yet continues to face liquidity constraints as evidenced by ratios consistently below or near critical thresholds. The fluctuations suggest management has periodically intensified efforts to bolster liquidity, but the overall liquidity position remains relatively cautious, especially in the context of the cash ratio, which remains persistently low.

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Additional liquidity measure

The analysis of Campbell’s Co cash conversion cycle (CCC) over the period from July 2022 to July 2025 reveals fluctuations indicating variations in the company's operational efficiency in managing receivables, inventory, and payables.

Initially, in July 2022, the CCC was recorded at 18.20 days, suggesting a relatively efficient cycle. This increased considerably over the subsequent months, peaking at 28.34 days in October 2023, reflecting a lengthening of the cycle which could imply slower collection of receivables, increased inventory holding periods, or delayed payments to suppliers.

Between October 2023 and April 2025, there is notable variability. The CCC decreased somewhat to 22.57 days in January 2025 but remained elevated compared to July 2022 levels. The data indicates that during this period, Campbell’s Co experienced challenges in optimizing its working capital cycle, possibly due to operational or market factors that extended the time it takes to convert investments in inventory and receivables into cash.

The final recorded value in July 2025 is 0.00 days, which might suggest an anomaly such as a data reporting issue or a significant operational change, including a potential overhaul of the cash management processes or a change in reporting standards.

Overall, the trend shows a fluctuating but generally increasing cash conversion cycle over the analyzed period, pointing to a potential need for the company to improve how it manages its receivables, inventories, and payables to enhance liquidity and operational efficiency.