Calavo Growers Inc (CVGW)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,091 | 2,060 | 1,885 | 4,055 | 7,973 |
| Short-term investments | US$ in thousands | — | — | — | 23,197 | — |
| Receivables | US$ in thousands | 68,176 | 63,816 | 84,166 | 69,368 | 68,723 |
| Total current liabilities | US$ in thousands | 81,746 | 101,953 | 114,624 | 106,331 | 90,629 |
| Quick ratio | 0.86 | 0.65 | 0.75 | 0.91 | 0.85 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,091K
+ $—K
+ $68,176K)
÷ $81,746K
= 0.86
The quick ratio of Calavo Growers, Inc has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory.
In 2023, the quick ratio improved to 1.14 from 0.84 in 2022, indicating a better ability to cover short-term obligations using liquid assets. This improvement suggests that the company may have increased its cash holdings or reduced its current liabilities compared to the previous year.
However, it is important to note that in 2022, the quick ratio had declined from 0.97 in 2021. This could indicate a decrease in the company’s ability to cover short-term obligations with its quick assets, suggesting potential liquidity challenges.
Over the past five years, the quick ratio has generally remained above 1, indicating that Calavo Growers, Inc has been able to meet its short-term obligations with its quick assets. However, the fluctuations in the quick ratio warrant further investigation into the company's management of its current assets and liabilities to ensure ongoing liquidity and financial stability.