National Beverage Corp (FIZZ)
Current ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | May 1, 2021 | May 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 536,872 | 366,405 | 274,520 | 364,942 | 460,712 |
| Total current liabilities | US$ in thousands | 137,927 | 144,321 | 145,319 | 147,194 | 141,688 |
| Current ratio | 3.89 | 2.54 | 1.89 | 2.48 | 3.25 |
April 27, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $536,872K ÷ $137,927K
= 3.89
The current ratio of National Beverage Corp has exhibited fluctuations over the past five years. The ratio stood at 3.89 as of April 27, 2024, indicating a strong ability to cover its short-term obligations with current assets. This represents a significant improvement compared to the previous years, where the ratio ranged from 1.89 to 3.25.
A current ratio above 1 suggests that the company has more than enough current assets to cover its current liabilities. A higher current ratio is generally deemed favorable as it signifies a stronger liquidity position and implies lower financial risk. National Beverage Corp's current ratio of 3.89 in 2024 indicates a healthy liquidity position, which may provide the company with a buffer to meet its short-term obligations.
However, while a high current ratio reflects a strong liquidity position, it may also indicate that the company has excess idle assets that are not efficiently utilized in generating returns. Therefore, it is essential for National Beverage Corp to strike a balance between maintaining a healthy current ratio and ensuring optimal asset utilization for maximizing shareholders' wealth.
Peer comparison
Apr 27, 2024