Simply Good Foods Co (SMPL)
Current ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 440,280 | 371,652 | 351,601 | 298,666 | 260,263 |
| Total current liabilities | US$ in thousands | 108,615 | 89,857 | 102,248 | 113,664 | 71,478 |
| Current ratio | 4.05 | 4.14 | 3.44 | 2.63 | 3.64 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $440,280K ÷ $108,615K
= 4.05
The current ratio of Simply Good Foods Co has exhibited fluctuations over the past five years, ranging from 2.63 in August 2021 to 4.14 in August 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets relative to its current liabilities.
In August 2024, Simply Good Foods Co's current ratio stood at 4.05, reflecting a slight decrease from the previous year but still indicating a robust liquidity position. This suggests that the company has more than enough current assets to cover its short-term liabilities, providing a cushion in case of unexpected financial challenges.
Overall, Simply Good Foods Co has maintained a healthy current ratio above 3.0 in the past five years, indicating a solid financial position and the ability to meet its short-term obligations efficiently. The trend of fluctuating current ratios should be monitored to ensure continued liquidity and financial stability.
Peer comparison
Aug 31, 2024