Simply Good Foods Co (SMPL)
Cash ratio
| 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 | Aug 31, 2019 | May 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 266,341 | 247,618 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,644 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 48,032 | 39,300 |
| Cash ratio | 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 | 5.55 | 6.30 |
February 24, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($135,876K
+ $—K)
÷ $103,661K
= 1.31
The cash ratio of Simply Good Foods Co has fluctuated over the past few quarters but generally demonstrates a positive trend. The ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.
In the most recent quarter, the cash ratio was 1.31, indicating that the company had $1.31 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy liquidity position, as the company has sufficient cash to cover its short-term obligations.
Looking back over the historical data, the cash ratio has generally improved since the beginning of 2019, with some variability in between. The trend shows an increasing ability to meet short-term obligations with cash on hand, which is a positive indicator of financial health and liquidity management.
It is important to note that a high cash ratio may also suggest that the company is not effectively utilizing its cash assets for growth or investment opportunities. Conversely, a low ratio could indicate a potential risk of liquidity problems. Therefore, maintaining an appropriate balance in the cash ratio is crucial for Simply Good Foods Co to ensure financial stability and flexibility in managing its short-term obligations.
Peer comparison
Feb 24, 2024