Simply Good Foods Co (SMPL)

Cash ratio

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Cash and cash equivalents	US$ in thousands	87,715	67,494	75,345	95,847	266,341
Short-term investments	US$ in thousands	—	—	—	3,644	—
Total current liabilities	US$ in thousands	89,857	102,248	113,664	71,478	48,032
Cash ratio		0.98	0.66	0.66	1.39	5.55

August 26, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($87,715K + $—K) ÷ $89,857K
= 0.98

The cash ratio of Simply Good Foods Co has fluctuated over the past five years. In 2019, the cash ratio was significantly high at 5.73, indicating a strong ability to cover short-term liabilities with cash and cash equivalents. However, in the subsequent years, the cash ratio decreased, reaching its lowest point of 0.79 in 2021. This suggests a potential decrease in the company's liquidity and ability to meet short-term obligations with its available cash. In 2023, the cash ratio recovered to 1.22, indicating an improvement in the company's liquidity position compared to the previous year, although it is still lower than the 2019 level. Overall, the company's cash ratio has experienced fluctuations, reflecting changes in its liquidity position over the years.