Greif Bros Corporation (GEF)

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 1.57 1.46 1.52 1.58 1.67 1.43 1.48 1.44 1.33 1.27 1.26 1.25 1.36 1.30 1.43 1.48 1.59 1.51 1.60 1.67
Quick ratio 0.93 0.89 0.88 0.94 0.95 0.86 0.89 0.88 0.73 0.77 0.75 0.78 0.79 0.74 0.79 0.85 0.89 0.90 0.96 0.98
Cash ratio 0.20 0.19 0.17 0.17 0.18 0.14 0.11 0.10 0.09 0.09 0.08 0.10 0.10 0.11 0.11 0.09 0.11 0.09 0.09 0.11

The liquidity ratios of Greif Inc indicate the company's ability to meet its short-term obligations and cover immediate expenses.

Starting with the current ratio, which measures the company's ability to pay off its current liabilities with its current assets, we observe a fluctuating trend over the past eight quarters. The ratio ranged from 1.43 to 1.67, with an average of approximately 1.51. Generally, a current ratio above 1 is considered healthy, and Greif Inc has been able to maintain a current ratio above this threshold, which suggests a sufficient level of liquidity to cover short-term obligations.

Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see a similar pattern of fluctuation over the quarters. The quick ratio varied between 1.02 and 1.17, with an average of around 1.10. This indicates that Greif Inc has a smaller buffer to cover its short-term obligations without relying on inventory, compared to the current ratio results.

Lastly, the cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, shows an increasing trend over the past quarters, ranging from 0.23 to 0.43, with an average of approximately 0.35. Despite the volatility, the upward trend suggests that Greif Inc has been improving its ability to cover immediate liabilities with cash on hand.

Overall, the liquidity ratios of Greif Inc demonstrate a varying but generally adequate level of liquidity to meet short-term obligations. However, the company should continue to monitor and manage its liquidity position to ensure ongoing financial stability and flexibility.

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 37.62 33.42 36.77 38.75 38.91 33.30 39.33 42.05 41.21 43.81 39.02 35.24 39.24 33.20 39.69 40.25 46.73 43.91 55.79 56.23

The cash conversion cycle of Greif Inc has shown fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle was 36.28 days, which increased from the previous quarter. This indicates that it took Greif Inc 36.28 days to convert its investments in raw materials into cash received from customers.

Comparing Q1 2024 to the same quarter in the previous year, there was a slight improvement, as the cash conversion cycle was lower in Q1 2023 at 38.90 days.

Furthermore, the company's cash conversion cycle in Q4 2023 was 31.85 days, which was the lowest observed in the past eight quarters. This suggests that Greif Inc was able to efficiently manage its working capital and convert its resources into cash more quickly during that quarter.

Overall, despite fluctuations quarter to quarter, Greif Inc's cash conversion cycle seems to be showing some level of stability. However, the company should continue to monitor and manage its working capital effectively to improve its cash conversion cycle, which ultimately impacts its liquidity and financial performance.