J & J Snack Foods Corp (JJSF)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.59 | 2.27 | 2.41 | 2.40 | 2.46 | 2.50 | 2.73 | 2.76 | 2.45 | 2.63 | 3.53 | 3.64 | 3.49 | 3.55 | 3.70 | 3.83 | 3.72 | 3.75 | 3.77 | 3.69 |
| Quick ratio | 1.51 | 1.34 | 1.27 | 1.31 | 1.42 | 1.51 | 1.52 | 1.52 | 1.39 | 1.73 | 2.53 | 2.81 | 2.77 | 2.83 | 2.86 | 2.94 | 2.79 | 2.80 | 2.81 | 2.85 |
| Cash ratio | 0.42 | 0.32 | 0.25 | 0.30 | 0.28 | 0.35 | 0.27 | 0.36 | 0.25 | 0.46 | 1.40 | 1.78 | 1.80 | 1.86 | 1.90 | 2.08 | 1.84 | 1.89 | 1.76 | 1.87 |
The liquidity ratios of J & J Snack Foods Corp, specifically the current ratio, quick ratio, and cash ratio, have exhibited fluctuating trends over the past few quarters.
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged between 2.27 and 3.83 over the recent quarters, demonstrating a healthy liquidity position. The current ratio peaked at 3.83 in Q3 2022 but has since declined to 2.59 in the latest quarter, indicating a slight decrease in short-term solvency.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a similar pattern, with values ranging from 1.27 to 2.94. The quick ratio reached its highest point at 2.94 in Q4 2020 and has since trended downwards to 1.51 in the most recent quarter, pointing to a potential lower ability to cover immediate liabilities without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity using only cash and cash equivalents, has fluctuated between 0.25 and 2.08. Notably, the cash ratio surged to 2.08 in Q4 2020 but has since declined to 0.42 in the latest quarter, suggesting a lower level of cash resources relative to current liabilities.
In summary, while J & J Snack Foods Corp has maintained relatively strong liquidity ratios in recent quarters, there has been a slight decrease in liquidity levels as indicated by the declining trends in the current ratio, quick ratio, and cash ratio. Monitoring these ratios over time will be essential to assess the company's ability to meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 67.62 | 67.78 | 67.54 | 63.89 | 69.37 | 74.87 | 77.38 | 76.18 | 77.72 | 86.09 | 75.15 | 63.48 | 61.90 | 59.53 | 65.25 | 57.70 | 59.85 | 59.93 | 64.19 | 60.69 |
The cash conversion cycle of J & J Snack Foods Corp, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has varied over the past few quarters.
From Dec 2019 to Jun 2020, the cash conversion cycle stayed relatively stable, ranging between 57.70 days and 64.19 days. However, starting from Sep 2020, there was an increasing trend observed, peaking at 86.09 days in Jun 2022. Subsequently, there was a slight decrease seen in the cycle, reaching its lowest point of 59.53 days in Mar 2023.
Overall, the cash conversion cycle of J & J Snack Foods Corp has shown fluctuations, indicating possible changes in the company's management of inventory, accounts receivable, and accounts payable. The firm may need to focus on optimizing these processes to improve efficiency and cash flow management in the future.