National Beverage Corp (FIZZ)

Based on the provided data, the liquidity ratios of National Beverage Corp show a positive trend over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has improved from 1.89 in April 30, 2022, to 3.89 in April 30, 2024. This indicates that the company has increased its current assets relative to its current liabilities, enhancing its short-term financial stability.

Furthermore, the quick ratio, also known as the acid-test ratio, reflects the company's ability to meet its short-term obligations using its most liquid assets. National Beverage Corp's quick ratio has shown significant improvement, rising from 0.33 in April 30, 2022, to 2.37 in April 30, 2024. This signifies that the company has strengthened its liquidity position by increasing its quick assets in relation to its current liabilities.

Lastly, the cash ratio, which specifically measures the company's ability to cover its current liabilities with cash and cash equivalents, has also demonstrated growth over the years. The cash ratio of National Beverage Corp increased from 0.33 in April 30, 2022, to 2.37 in April 30, 2024. This indicates that the company has enhanced its ability to settle its short-term obligations using cash resources.

Overall, the liquidity ratios of National Beverage Corp illustrate a positive trajectory, reflecting an improved ability to meet its short-term financial obligations and suggesting enhanced financial health and stability.

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Additional liquidity measure

National Beverage Corp's cash conversion cycle has shown fluctuations over the past five years. In April 2022, the company's cash conversion cycle was 52.36 days, indicating that it took approximately 52 days for the company to convert its investments in raw materials into cash from the sale of finished goods.

Over the following years, there were variations in the cash conversion cycle. By April 2023, the cycle decreased to 36.63 days, signifying a more efficient management of cash flows and working capital. However, in the subsequent period, the cycle increased to 44.01 days before dropping significantly to 34.52 days in April 2024. This suggests that the company improved its efficiency in managing inventory and collecting receivables.

By the end of April 2024, the cash conversion cycle increased slightly to 40.46 days, but still remained lower than the initial period. Overall, the trend indicates that National Beverage Corp has made efforts to streamline its operations and optimize its working capital management over the five-year period.