Campbell Soup Company Common Stock (CPB)
Quick ratio
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 108,000 | 189,000 | 109,000 | 69,000 | 859,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 630,000 | 529,000 | 541,000 | 595,000 | 575,000 |
| Total current liabilities | US$ in thousands | 3,576,000 | 2,222,000 | 2,886,000 | 1,814,000 | 3,075,000 |
| Quick ratio | 0.21 | 0.32 | 0.23 | 0.37 | 0.47 |
July 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,000K
+ $—K
+ $630,000K)
÷ $3,576,000K
= 0.21
The quick ratio of Campbell Soup Company Common Stock has shown a declining trend over the past five years. The ratio has decreased from 0.47 in August 2020 to 0.21 in July 2024. This suggests that the company's ability to cover its short-term liabilities with its most liquid assets has weakened over this period.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without having to sell inventory or obtain additional financing quickly. Therefore, the decreasing trend in the quick ratio of Campbell Soup Company Common Stock raises concerns about its short-term financial stability and liquidity position.
Investors and stakeholders should closely monitor the company's liquidity management practices and assess its ability to generate sufficient cash flow to meet short-term obligations in the future. Further analysis of the company's current assets and liabilities is recommended to better understand the factors contributing to the declining quick ratio.
Peer comparison
Jul 28, 2024