John B Sanfilippo & Son Inc (JBSS)

The liquidity ratios of John B Sanfilippo & Son Inc. over the period from June 30, 2021, to June 30, 2025, demonstrate a generally favorable liquidity position, with some fluctuations observed across the years.

The current ratio, which measures the company’s ability to meet its short-term obligations with its short-term assets, exhibited a steady upward trend initially, rising from 2.25 in June 2021 to a peak of 2.97 in June 2023. This indicates a strengthening in liquidity during this period, as the company maintained ample current assets relative to current liabilities. However, post-2023, the current ratio declined to 2.34 in June 2024 and further to 2.22 in June 2025. Despite this decrease, the ratios remain comfortably above the generally acceptable benchmark of 1.0, suggesting ongoing liquidity adequacy, although the declining trend could warrant monitoring for potential liquidity pressure in the future.

The quick ratio, which excludes inventories and measures the company’s ability to cover short-term liabilities with its most liquid assets, showed more volatility. It declined from 0.67 in June 2021 to 0.57 in June 2022, indicating a reduction in readily available assets relative to current liabilities. During this period, the quick ratio improved significantly to 0.87 in June 2023, surpassing the previous levels, which suggests an improved liquidity position with more liquid assets available for meeting short-term obligations. Afterwards, it decreased to 0.68 in June 2024 and further to 0.49 in June 2025, reflecting a declining trend in liquid assets relative to short-term liabilities. Nonetheless, even at its lowest in June 2025, the quick ratio remains below 1.0, implying the company’s reliance on less liquid current assets such as inventories to fulfill short-term liabilities.

The cash ratio, a more conservative measure evaluating the company’s ability to settle obligations with cash and cash equivalents, remained at minimal levels throughout the period. It was extremely low at 0.01 in June 2021, practically negligible, and then fell to 0.00 in June 2022, June 2024, and June 2025. It rose slightly to 0.02 in June 2023 but remained close to zero, demonstrating very limited cash availability relative to current liabilities. This suggests that the company’s immediate liquidity—cash and cash equivalents—is quite constrained, and its ability to meet short-term liabilities solely with cash is very limited.

Overall, the liquidity position of John B Sanfilippo & Son Inc. shows strength in the current ratio, indicating ample current assets cover liabilities, although the declining trend warrants attention. The quick ratio reveals a reliance on less liquid assets, with fluctuations suggesting improving liquidity at one point, followed by deterioration. The cash ratio underscores minimal immediate cash reserves. Collectively, these ratios suggest that while the company generally maintains sufficient liquidity, its reliance on current and quick assets (besides cash) to satisfy short-term obligations warrants ongoing monitoring to ensure adequate liquidity amid changing circumstances.

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Additional liquidity measure

The analysis of John B Sanfilippo & Son Inc's cash conversion cycle (CCC) over the specified period reveals notable fluctuations that reflect changes in operational efficiency and working capital management.

As of June 30, 2021, the company's CCC was 81.96 days, indicating a relatively efficient conversion of inventory and receivables into cash, with a moderate level of days tied up in working capital. The cycle increased significantly in June 30, 2022, reaching 102.42 days, representing a deterioration in liquidity management or operational efficiency, possibly due to longer inventory holding periods, extended receivables, or delays in cash collection.

Subsequently, the CCC decreased to 86.89 days by June 30, 2023, suggesting an improvement in working capital management and operational processes, though it remained above the 2021 level. However, the cycle experienced an upward trend again, reaching 90.34 days on June 30, 2024, indicating a slight elongation in the cash conversion period. This could be attributable to increased inventory levels, slower receivables turnover, or changes in payment cycles.

The most recent data point on June 30, 2025, shows the CCC at 103.67 days, which marks the longest duration within the analyzed timeframe. This extended cycle suggests potential challenges in converting inventory and receivables into cash efficiently, possibly leading to greater capital being tied up in working capital and affecting liquidity.

Overall, the company's cash conversion cycle has exhibited volatility over these periods, with a peak in mid-2022 and a gradual elongation toward mid-2025. These fluctuations may reflect strategic or operational shifts that impact inventory management, receivables collection, and payables periods. Monitoring and optimizing the components of the CCC could enhance the company's liquidity and operational efficiency moving forward.