Calavo Growers Inc (CVGW)
Liquidity ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.03 | 1.63 | 1.48 | 1.25 | 1.26 | 1.23 | 1.25 | 1.33 | 1.54 | 1.33 | 1.57 | 1.78 | 1.79 | 1.28 | 1.41 | 1.21 | 1.28 | 1.41 | 1.53 | 1.39 |
| Quick ratio | 0.35 | 0.86 | 0.81 | 0.67 | 0.65 | 0.65 | 0.76 | 0.81 | 0.90 | 0.75 | 1.16 | 1.34 | 1.40 | 0.91 | 0.82 | 0.73 | 0.77 | 0.85 | 0.94 | 0.83 |
| Cash ratio | 0.05 | 0.03 | 0.01 | 0.04 | 0.02 | 0.02 | 0.02 | 0.02 | 0.07 | 0.02 | 0.30 | 0.38 | 0.43 | 0.26 | 0.04 | 0.03 | 0.04 | 0.09 | 0.05 | 0.07 |
The current ratio of Calavo Growers Inc has shown fluctuations over the periods examined. The ratio increased from 1.39 in April 2019 to 2.03 in January 2024, indicating a strengthening liquidity position over this period. However, the ratio peaked at 1.78 in January 2021 before declining and eventually recovering to 1.63 in October 2023. Overall, the current ratio remained above 1, indicating that Calavo had more than enough current assets to cover its current liabilities during these periods.
In contrast, the quick ratio displayed more variability compared to the current ratio. The quick ratio dropped to as low as 0.65 in January 2023 but recovered to 0.86 in October 2023. This indicates that the company had sufficient liquid assets to cover its current liabilities, excluding inventory, albeit at lower levels in some periods.
The cash ratio of Calavo also fluctuated over the periods presented. The ratio increased from 0.05 in January 2020 to 0.38 in July 2021. This spike could indicate a more significant proportion of cash and equivalents relative to current liabilities in that period. Subsequently, the cash ratio decreased but remained above 0.02 for most periods, except for a few instances.
Overall, the liquidity ratios of Calavo Growers Inc display a mixed picture, with fluctuations in the current, quick, and cash ratios over the periods analyzed. It is important for the company to maintain a strong liquidity position to meet its short-term obligations effectively.
Additional liquidity measure
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 29.55 | 31.71 | 38.51 | 33.39 | 29.73 | 28.31 | 33.27 | 45.83 | 45.22 | 39.65 | 44.50 | 49.20 | 39.34 | 35.85 | 36.95 | 38.09 | 31.26 | 27.25 | 37.31 | 39.45 |
The cash conversion cycle of Calavo Growers Inc has shown some fluctuation over the past few quarters. The cycle measures the time it takes for a company to convert its investment in inventory into cash from sales.
Looking at the data, the company's cash conversion cycle ranged from a low of 27.25 days to a high of 49.20 days over the past two years. Generally, a shorter cash conversion cycle indicates that the company is more efficient in managing its working capital.
The highest cash conversion cycle was recorded in April 2022 at 49.20 days, which may suggest potential issues with inventory management or delays in collecting receivables. However, the company was able to reduce this cycle to 27.25 days by October 2019, showing improvement in efficiency.
Overall, it is important for Calavo Growers Inc to continuously monitor and manage its cash conversion cycle to ensure optimal utilization of its working capital and improve its overall financial performance.