J & J Snack Foods Corp (JJSF)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 450,414 | 430,212 | 444,637 | 584,769 | 499,557 |
| Total current liabilities | US$ in thousands | 174,073 | 174,944 | 181,839 | 167,629 | 134,126 |
| Current ratio | 2.59 | 2.46 | 2.45 | 3.49 | 3.72 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $450,414K ÷ $174,073K
= 2.59
Based on the provided data, J & J Snack Foods Corp's current ratio has exhibited fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
In 2020, the company had a relatively high current ratio of 3.72, indicating a strong ability to meet its short-term obligations. However, this ratio decreased in the following years, reaching 2.45 in 2022, and then slightly increasing to 2.46 in 2023.
The current ratio improved significantly in 2021, reaching 3.49, suggesting a better liquidity position compared to the previous year. The latest data for 2024 shows a current ratio of 2.59, which indicates that the company has improved its ability to cover short-term liabilities compared to the two previous years but still slightly lower than in 2020.
Overall, the trend in J & J Snack Foods Corp's current ratio indicates some fluctuations in liquidity levels over the past five years. It is essential for the company to maintain a healthy current ratio to ensure it can meet its short-term financial obligations efficiently.