Campbell Soup Company Common Stock (CPB)

Liquidity ratios

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Jul 28, 2024 Apr 30, 2024 Apr 28, 2024 Jan 31, 2024 Jan 28, 2024 Oct 31, 2023 Oct 29, 2023 Jul 31, 2023 Jul 30, 2023 Apr 30, 2023 Jan 31, 2023 Jan 29, 2023 Oct 31, 2022 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Apr 30, 2022
Current ratio 0.93 0.91 0.61 0.61 0.62 0.62 1.01 1.01 0.97 0.97 0.93 0.93 0.92 0.77 0.77 0.76 0.76 0.68 0.69 0.69
Quick ratio 0.24 0.23 0.03 0.21 0.03 0.22 0.08 0.39 0.04 0.35 0.09 0.32 0.10 0.06 0.28 0.04 0.28 0.04 0.26 0.07
Cash ratio 0.24 0.23 0.03 0.03 0.03 0.03 0.08 0.08 0.04 0.04 0.09 0.09 0.10 0.06 0.06 0.04 0.04 0.04 0.07 0.07

The current ratio of Campbell Soup Company Common Stock has shown fluctuating trends over the reviewed periods, ranging from a low of 0.62 to a high of 1.01. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. While the ratio increased over time, it dipped significantly in the April 28, 2024, and July 28, 2024, periods, which may raise concerns about the company's liquidity position during those specific periods.

In comparison, the quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has also displayed variability. It ranged from 0.03 to 0.39, suggesting some fluctuations in the availability of liquid assets to cover immediate liabilities. The quick ratio generally improved over the periods, indicating a better ability to meet short-term obligations using liquid assets.

Lastly, the cash ratio, a more stringent indicator of liquidity that considers only cash and cash equivalents to cover short-term liabilities, also had fluctuations between 0.03 and 0.24. The cash ratio demonstrated an improvement in the company's ability to cover short-term liabilities with cash and cash equivalents over the review periods, with a notable increase in the October 31, 2024, and January 31, 2025 periods.

Overall, although Campbell Soup Company's liquidity ratios have shown fluctuations, there is evidence of improvement in its liquidity position over the reviewed periods, as indicated by the upward trends in the current, quick, and cash ratios. Investors and stakeholders should continue to monitor these ratios to assess the company's ongoing liquidity health.

Additional liquidity measure

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Jul 28, 2024 Apr 30, 2024 Apr 28, 2024 Jan 31, 2024 Jan 28, 2024 Oct 31, 2023 Oct 29, 2023 Jul 31, 2023 Jul 30, 2023 Apr 30, 2023 Jan 31, 2023 Jan 29, 2023 Oct 31, 2022 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Apr 30, 2022
Cash conversion cycle days 61.96 70.09 66.96 27.82 62.80 22.71 56.41 18.47 69.49 28.34 73.00 20.07 65.39 59.25 16.58 69.99 25.73 72.88 8.29 59.67

The cash conversion cycle of Campbell Soup Company Common Stock fluctuated over the given period, indicating changes in its efficiency in managing cash flow.

The cycle started at 59.67 days on April 30, 2022, decreased significantly to 8.29 days by May 1, 2022, before peaking at 73.00 days on July 31, 2023. Thereafter, the cycle gradually decreased to 56.41 days on January 31, 2024, then increased again to 70.09 days by October 31, 2024.

Overall, the company showed variability in its cash cycle efficiency, with periods of both improvement and deterioration. It is essential for Campbell Soup Company Common Stock to consistently monitor and manage its cash conversion cycle to optimize its working capital and ensure a healthy financial position.