John B Sanfilippo & Son Inc (JBSS)
Liquidity ratios
| 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 23, 2021 | Sep 23, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.34 | 2.46 | 2.26 | 2.82 | 2.97 | 2.67 | 2.48 | 2.18 | 2.31 | 1.98 | 1.97 | 1.90 | 2.25 | 2.10 | 2.32 | 1.93 | 2.13 | 1.94 | 1.97 | 2.14 |
| Quick ratio | 0.68 | 0.63 | 0.62 | 0.77 | 0.87 | 0.73 | 0.70 | 0.61 | 0.57 | 0.48 | 0.50 | 0.59 | 0.67 | 0.61 | 0.64 | 0.60 | 0.67 | 0.51 | 0.46 | 0.59 |
| Cash ratio | 0.00 | 0.00 | 0.02 | 0.01 | 0.02 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 | 0.01 | 0.02 | 0.01 | 0.17 | 0.01 | 0.01 | 0.01 |
The current ratio of John B Sanfilippo & Son Inc has shown some fluctuations over the past few quarters, ranging from 1.97 to 2.97. Overall, the company has maintained a current ratio above 2, indicating that it has more than enough current assets to cover its current liabilities. This suggests a strong ability to meet short-term obligations.
In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, the company's performance has also varied. The quick ratio has ranged from 0.46 to 0.87, with the company showing a relatively lower ability to cover current liabilities using only its most liquid assets. However, the quick ratio has remained somewhat stable around 0.60-0.70 in recent quarters.
The cash ratio, which measures the company's capacity to cover its current liabilities with cash and cash equivalents alone, has shown a similar trend. While the cash ratio has been quite low, hovering around 0.00-0.02, it did experience a significant increase to 0.17 in the most recent quarter. This suggests that the company may have improved its ability to cover short-term obligations with readily available cash resources.
Overall, John B Sanfilippo & Son Inc exhibits generally strong liquidity positions as indicated by the current ratio consistently above 2. However, the fluctuating nature of the quick ratio and the historically low cash ratio may warrant further attention to ensure sustainable liquidity over the long term.
Additional liquidity measure
| 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 23, 2021 | Sep 23, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 90.34 | 98.28 | 91.30 | 84.19 | 86.89 | 93.31 | 82.77 | 94.01 | 102.42 | 110.57 | 86.90 | 87.42 | 81.93 | 85.77 | 80.77 | 86.06 | 93.97 | 92.46 | 69.68 | 71.59 |
The cash conversion cycle of John B Sanfilippo & Son Inc has shown some fluctuations over the past several quarters. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, reflects the efficiency of the company's working capital management.
Looking at the data, we can see that the cash conversion cycle has ranged from a low of 69.68 days to a high of 110.57 days over the past few quarters. A longer cash conversion cycle indicates that the company takes more time to convert its investments into cash, which can tie up capital and potentially indicate inefficiencies in managing inventory, accounts receivable, and accounts payable.
In general, a decreasing trend in the cash conversion cycle is seen as a positive sign as it implies that the company is managing its working capital more efficiently, turning its assets into cash more quickly. On the other hand, an increasing trend in the cash conversion cycle may raise concerns about the company's liquidity and operational efficiency.
It is important for John B Sanfilippo & Son Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable growth. Analyzing the components of the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, can help identify areas for improvement and enhance overall liquidity and financial performance.