Simply Good Foods Co (SMPL)
Cash ratio
| Aug 31, 2024 | May 25, 2024 | Feb 24, 2024 | Nov 25, 2023 | Aug 26, 2023 | May 27, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 132,530 | 208,681 | 135,876 | 121,391 | 87,715 | 68,794 | 63,207 | 54,144 | 67,494 | 56,720 | 51,469 | 35,447 | 75,345 | 90,173 | 91,307 | 91,476 | 95,847 | 111,134 | 46,115 | 72,711 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,644 | — | — | — |
| Total current liabilities | US$ in thousands | 108,615 | 92,701 | 103,661 | 78,989 | 89,857 | 71,275 | 80,403 | 80,914 | 102,248 | 120,287 | 107,655 | 80,765 | 113,664 | 97,960 | 80,560 | 75,376 | 71,478 | 87,770 | 74,289 | 94,731 |
| Cash ratio | 1.22 | 2.25 | 1.31 | 1.54 | 0.98 | 0.97 | 0.79 | 0.67 | 0.66 | 0.47 | 0.48 | 0.44 | 0.66 | 0.92 | 1.13 | 1.21 | 1.39 | 1.27 | 0.62 | 0.77 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($132,530K
+ $—K)
÷ $108,615K
= 1.22
The cash ratio of Simply Good Foods Co has varied over the past few quarters, ranging from 0.44 to 2.25. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a stronger ability to meet its short-term obligations without relying on external sources.
The cash ratio has generally shown an upward trend over the past few quarters, with occasional fluctuations. The ratio was highest in May 25, 2024, at 2.25, indicating a strong liquidity position at that time. This could be due to higher cash reserves or lower current liabilities.
On the other hand, the lowest cash ratio was observed on February 26, 2022, at 0.44, suggesting a comparatively weaker ability to cover current liabilities with cash on hand. It's essential to investigate the reasons behind such fluctuations in the cash ratio to understand the company's liquidity management and financial health more comprehensively.
Overall, the cash ratio trend of Simply Good Foods Co highlights the importance of maintaining adequate cash reserves to meet short-term obligations and manage liquidity effectively.
Peer comparison
Aug 31, 2024