Lancaster Colony Corporation (LANC)

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 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	Sep 30, 2019
Current ratio	2.41	2.32	2.48	2.31	2.22	1.99	2.07	1.98	2.12	2.01	2.25	2.28	2.43	2.82	3.03	2.92	3.05	2.79	2.85	2.70
Quick ratio	1.41	1.41	1.43	1.16	1.21	1.09	1.23	1.05	1.18	0.99	1.27	1.33	1.64	2.03	2.16	2.02	2.26	1.94	2.10	1.94
Cash ratio	0.89	0.87	0.82	0.44	0.52	0.42	0.53	0.34	0.36	0.37	0.66	0.72	1.08	1.39	1.54	1.33	1.57	1.30	1.52	1.27

Lancaster Colony Corporation has demonstrated consistent liquidity strength over the past several quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally trended positively, averaging around 2.30 over the periods analyzed. This indicates that the company has more than enough current assets to meet its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown stability, averaging approximately 1.40. This suggests that Lancaster Colony can meet its short-term obligations without relying on selling inventory.

Looking at the cash ratio, which focuses solely on cash and cash equivalents as a proportion of current liabilities, the company has maintained a healthy position, averaging around 0.75. This indicates that Lancaster Colony has a solid cash cushion to cover its short-term liabilities, providing a sense of comfort to investors and creditors.

Overall, the liquidity ratios of Lancaster Colony Corporation reflect a strong financial position with ample resources to meet its short-term obligations, indicating a stable and sound liquidity management strategy.

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 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	Sep 30, 2019
Cash conversion cycle	days	30.50	28.66	31.14	35.82	33.09	29.75	28.06	36.06	36.39	34.38	31.57	34.54	27.61	28.06	29.76	33.48	27.96	25.62	22.45	28.29

The cash conversion cycle of Lancaster Colony Corporation has shown fluctuations over the past few quarters, indicating variations in its efficiency in managing cash flow. The trend reveals that the company's cash conversion cycle has generally ranged between 22.45 days to 36.39 days over the past few years.

A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables back into cash more quickly, which can be a positive sign of efficient operations. Conversely, a higher cash conversion cycle may imply that the company is taking longer to collect payments from customers or is holding onto inventory for an extended period, potentially tying up cash in the process.

It is important for Lancaster Colony Corporation to closely monitor and potentially optimize its cash conversion cycle to ensure a healthy balance between maintaining sufficient liquidity and maximizing operational efficiency. By focusing on streamlining inventory management, improving accounts receivable collection processes, and optimizing payment terms with suppliers, the company may be able to shorten its cash conversion cycle and enhance its overall financial performance.