John B Sanfilippo & Son Inc (JBSS)

The liquidity ratios of John B Sanfilippo & Son Inc., as reflected in the provided data, demonstrate a generally stable liquidity position over the period under review, with some notable fluctuations.

The current ratio, which measures the company's ability to meet its short-term obligations with its short-term assets, exhibits an upward trend overall. Starting at 2.10 as of March 31, 2021, it increased to a peak of 3.87 as of June 30, 2025. The ratio consistently remains above 2.0 throughout the period, indicating a robust liquidity buffer and a strong ability to cover current liabilities. Periodic minor declines, such as the drop from 2.97 in June 2023 to 2.26 in December 2023, suggest some short-term variations, but the overall trend remains positive.

The quick ratio, which refines the current ratio by excluding inventory to better reflect immediate liquidity, follows a similar pattern. It starts at 0.61 in March 2021 and exhibits a gradual increase, reaching a high of 0.90 in June 2025. This indicates an improving ability to satisfy short-term liabilities using the most liquid assets, primarily cash and receivables. The gradual upward trend reflects a strengthening liquidity position when inventory is excluded from current assets.

The cash ratio, indicating the company's capacity to settle short-term liabilities with cash and cash equivalents, remains relatively low across the period. It holds at minimal levels, often below 0.02, with very few instances of slight increases, such as 0.02 in June 2023 and during part of 2025. This suggests that while the company's overall liquidity (current and quick ratios) is strong, it relies primarily on near-term liquid assets, but actual cash holdings are minimal at any given point. The persistently low cash ratio underscores the importance of other liquid assets beyond cash to meet short-term obligations.

In summary, John B Sanfilippo & Son Inc. maintains healthy liquidity ratios, with the current ratio indicating ample cover for short-term liabilities at all times. The quick ratio’s improvement confirms an enhanced ability to meet obligations using liquid assets, despite relatively low cash holdings. The overall trend shows strengthening liquidity, which positions the company well in managing its immediate financial commitments, though reliance on near-cash assets rather than cash itself remains evident.

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Additional liquidity measure

The cash conversion cycle (CCC) for John B Sanfilippo & Son Inc. demonstrates significant fluctuations over the period from March 2021 to June 2025. Initially, the CCC exhibited a relatively moderate level, averaging roughly 85.77 days in March 2021, and remained within the 81.96 to 88.20 days range through September 2021, indicating a stable operating cycle during that period.

Starting from December 2021, the cycle decreased slightly, reaching a low of 80.78 days, suggesting an improvement in the company's efficiency in converting investments in inventory and receivables into cash. However, a notable upward trend began in March 2022, when the CCC surged to approximately 104.71 days, signaling a lengthening in the cycle and potentially reflecting increased inventory holdings, slower receivables collection, or extended payables.

Throughout 2022, the cycle exhibited variability, with a notable decrease back to around 82.74 days by December 2022, but then increased again into 2023, reaching approximately 93.27 days in March 2023. The trend indicates inconsistent efficiency, with periods of shortening and elongation.

Remarkably, the cycle peaked at approximately 107.72 days in March 2025, the highest over the observed period. This substantial increase signals a significant deterioration in the company's operational efficiency, possibly due to extended inventory periods, slower receivables, or delays in payments.

Overall, the data indicates that John B Sanfilippo & Son Inc.'s cash conversion cycle has experienced considerable volatility, with a general trend toward longer cycles over time. Such lengthening may impact liquidity and operational efficiency, suggesting a need to monitor and potentially optimize components such as inventory management, receivables collection, and payables policies to maintain a more balanced and efficient cash flow cycle.