Lancaster Colony Corporation (LANC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 163,443 | 88,473 | 60,283 | 188,055 | 198,273 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 183,969 | 168,752 | 165,585 | 173,923 | 126,259 |
| Cash ratio | 0.89 | 0.52 | 0.36 | 1.08 | 1.57 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($163,443K
+ $—K)
÷ $183,969K
= 0.89
The cash ratio of Lancaster Colony Corporation has exhibited fluctuations over the past five years. In 2024, the cash ratio increased to 0.89 from 0.52 in 2023, indicating that the company had a higher level of cash and cash equivalents relative to its current liabilities. This improvement suggests that Lancaster Colony Corporation may have enhanced its liquidity position and is better able to cover its short-term obligations using its cash reserves.
Compared to 2022 and 2021 where the cash ratios were 0.36 and 1.08 respectively, the 2024 ratio falls between these two values. In 2021, the company had a relatively higher cash ratio of 1.08, indicating a stronger liquidity position compared to 2024. However, the 2024 ratio of 0.89 is higher than the 2020 ratio of 1.57, suggesting a decrease in liquidity when compared to this prior year.
Overall, while the cash ratio of Lancaster Colony Corporation has shown fluctuations over the years, the recent increase in the ratio may indicate improved liquidity and the company's ability to meet its short-term obligations with its cash reserves.
Peer comparison
Jun 30, 2024