Grocery Outlet Holding Corp (GO)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Current ratio	1.44	1.46	1.29	1.25	1.35	1.34	1.37	1.42	1.67	1.63	1.65	1.90	1.86	1.88	1.88	1.85	1.64	1.76	1.61	1.94
Quick ratio	0.18	0.19	0.18	0.18	0.30	0.41	0.27	0.27	0.37	0.37	0.32	0.57	0.59	0.68	0.59	0.48	0.45	0.30	0.38	0.84
Cash ratio	0.18	0.19	0.18	0.18	0.30	0.41	0.27	0.27	0.37	0.37	0.32	0.57	0.59	0.68	0.59	0.48	0.45	0.30	0.38	0.84

The current ratio of Grocery Outlet Holding Corp has shown some fluctuations over the past few years, ranging from a high of 1.94 in March 2020 to a low of 1.25 in March 2024. Generally, the company has maintained a current ratio above 1, indicating that it has had more current assets to cover its current liabilities.

On the other hand, the quick ratio, which excludes inventory from current assets, has been lower than the current ratio. It ranged from a low of 0.18 in March 2024 to a high of 0.68 in September 2021. This suggests that the company may have had difficulty meeting its short-term obligations with its most liquid assets.

The cash ratio, which is the most conservative liquidity measure, has also been relatively low, mirroring the quick ratio trends. It ranged from 0.18 in March 2024 to 0.84 in March 2020.

Overall, these liquidity ratios indicate that while Grocery Outlet Holding Corp has generally maintained current assets to cover current liabilities, its ability to quickly cover short-term obligations with its most liquid assets, particularly cash, has shown some weakness over the past few years.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash conversion cycle	days	47.18	48.83	46.37	47.35	46.83	41.93	44.36	44.93	49.09	50.96	51.17	49.55	47.19	41.69	42.20	41.14	41.40	44.92	42.27	36.63

The cash conversion cycle of Grocery Outlet Holding Corp has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024.

The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory into cash flows from sales, has shown a general increasing trend. It started at 36.63 days on March 31, 2020, increased gradually, reaching a peak of 51.17 days on June 30, 2022.

After the peak in mid-2022, there was a slight decrease in the cash conversion cycle, with fluctuations around the mid-40s days range until December 31, 2024, where it stood at 47.18 days. This indicates that the company was able to manage its cash conversion cycle more effectively towards the end of the period, compared to the peak in mid-2022.

Overall, the cash conversion cycle trend suggests that Grocery Outlet Holding Corp may have experienced challenges in efficiently managing its working capital and operations during the period under review. The company should focus on optimizing its inventory turnover, receivables collection, and payables management to improve its cash conversion cycle and enhance its overall liquidity position.