Lancaster Colony Corporation (LANC)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 163,443 | 88,473 | 60,283 | 188,055 | 198,273 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 95,560 | 114,967 | 135,496 | 97,897 | 86,604 |
| Total current liabilities | US$ in thousands | 183,969 | 168,752 | 165,585 | 173,923 | 126,259 |
| Quick ratio | 1.41 | 1.21 | 1.18 | 1.64 | 2.26 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($163,443K
+ $—K
+ $95,560K)
÷ $183,969K
= 1.41
The quick ratio of Lancaster Colony Corporation has shown some fluctuations over the past five years.
As of June 30, 2024, the quick ratio stands at 1.41, indicating that the company has $1.41 in liquid assets available to cover each dollar of current liabilities. This suggests that Lancaster Colony has a reasonable level of short-term liquidity to meet its immediate financial obligations.
Compared to the quick ratio of 1.21 in 2023 and 1.18 in 2022, the current ratio has improved, signaling a strengthening liquidity position. However, it is important to note that the quick ratio was higher at 1.64 in 2021 and even more so at 2.26 in 2020, indicating a higher level of short-term liquidity in those years.
Overall, while the quick ratio fluctuated over the period under review, the recent improvement in 2024 suggests that Lancaster Colony Corporation has managed to enhance its ability to meet short-term obligations using its liquid assets.
Peer comparison
Jun 30, 2024