Calavo Growers Inc (CVGW)
Current ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 133,370 | 125,674 | 152,641 | 135,895 | 127,515 |
| Total current liabilities | US$ in thousands | 81,746 | 101,953 | 114,624 | 106,331 | 90,629 |
| Current ratio | 1.63 | 1.23 | 1.33 | 1.28 | 1.41 |
October 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $133,370K ÷ $81,746K
= 1.63
The current ratio of Calavo Growers, Inc has exhibited some fluctuations over the past five years. As of October 31, 2023, the current ratio stands at 1.63, signaling an improvement compared to the prior year's figure of 1.23. This indicates that Calavo Growers, Inc's short-term liquidity position has strengthened, as the company's current assets exceed its current liabilities by a higher margin.
Looking back at the trend, the company's current ratio was at its lowest in 2022 at 1.23, before bouncing back to 1.33 in 2021. However, it is worth noting that the current ratio was higher in 2019 at 1.41 and in 2020 at 1.28, compared to the ratios noted in 2021 and 2022.
The improvement in the current ratio in 2023 compared to 2022 suggests that Calavo Growers, Inc has managed its short-term obligations more effectively in the current period. It also indicates that the company may be better positioned to meet its short-term liabilities, which could potentially enhance its financial flexibility and ability to capitalize on growth opportunities.
Overall, fluctuations in the current ratio over the past five years may reflect changes in the company's working capital management, which could be influenced by factors such as sales trends, inventory management, and accounts payable and receivable dynamics.