National Beverage Corp (FIZZ)

The liquidity position of National Beverage Corp has exhibited a general trend of strengthening over the monitored period, with continuous improvements across key liquidity ratios from mid-2022 through early 2025.

The current ratio, which measures the company's ability to cover short-term liabilities with its short-term assets, has increased steadily from approximately 1.92 in late July 2022 to a peak of 3.68 at the end of January 2024. This upward trajectory indicates an enhanced capacity to meet its short-term obligations, with the ratio remaining above the generally accepted benchmark of 2.0 for most of the period, suggesting a comfortable liquidity buffer. A slight decline was observed in mid-2024 to approximately 1.99, but the ratio rebounded, maintaining an adequate level above 2.5 through to April 2025.

The quick ratio, which excludes inventory from current assets to assess the more liquid assets available to cover liabilities, followed a similar positive trend. It rose from roughly 1.18 in July 2022 to over 2.85 at the end of January 2024, reflecting an increasing proportion of readily accessible assets. Slight fluctuations were recorded post-January 2024, with a noted decrease to about 1.31 in late July 2024, before rebounding to approximately 2.12 by April 2025. These changes suggest periods of variation in liquid asset composition but overall sustained improvement in liquidity.

The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents, also demonstrated growth over the period. It moved from approximately 0.42 in late July 2022 to a peak of around 2.37 in April 2024. Despite a dip to about 0.52 in late July 2024, the ratio increased again, reaching approximately 1.38 by April 2025. This pattern indicates the company's growing cash reserves relative to its short-term liabilities, with notable fluctuations possibly attributable to cash flow timing or strategic cash management interventions.

In summary, the analyzed data reflects a pattern of improving liquidity for National Beverage Corp over the examined period. The ratios suggest enhanced short-term financial stability, with the company progressively bolstering its ability to meet short-term obligations through both current and liquid asset increases. While some intermittent declines are observed, the overall trend indicates a robust liquidity position maintained across the analyzed timeline.

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Additional liquidity measure

The provided data illustrates the fluctuations in the cash conversion cycle (CCC) for National Beverage Corp over a series of reporting dates spanning from mid-2022 to early 2025. The CCC, a measure of the efficiency in managing working capital, consistently fluctuates within a range approximately between 31.43 days and 43.56 days across the observed periods.

In mid-2022, the CCC stands at around 39.72 days, with a slight decrease to 37.60 days by the end of July 2022, followed by a further reduction to approximately 31.84 days in October 2022. This indicates an improvement in working capital management during this period, likely driven by shorter receivables or inventory turnover cycles.

Subsequently, the early 2023 period shows an increase, with the CCC rising to 41.23 days in January and further to 43.22 days by the end of January 2023. This suggests a deterioration in operational efficiency, possibly due to longer receivables collection or inventory periods.

The trend then reverses somewhat by mid-2023, where the CCC decreases again, reaching approximately 36.46 days in July and 34.80 days by October 2023. This indicates an improvement in cash conversion efficiency during this timeframe.

Moving into 2024, the CCC exhibits some upward movement, peaking at 40.26 days in January but then declining back to approximately 36 days by April. The readings in mid-2024 reveal some volatility, with values around 43.56 days in July—indicating a period of reduced efficiency—and then a decrease to roughly 40.12 days by October.

By the beginning of 2025, the CCC appears to normalize lower, with values around 38.97 days in January and decreasing further to approximately 33 days by April. This downward trend may reflect improved receivables collection, inventory management, or accounts payable policies.

Overall, the company's cash conversion cycle demonstrates variability over the analyzed period, with periods of both efficiency improvements and setbacks. The observed oscillations may be attributable to seasonal factors, changes in supply chain dynamics, credit policies, or inventory management strategies. While some periods exhibit signs of enhanced operational efficiency, others suggest a need to further optimize working capital components to achieve more stable and shorter cash conversion cycles.