Simply Good Foods Co (SMPL)

Current 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
Total current assets	US$ in thousands	440,280	481,351	435,842	396,539	371,652	349,810	359,643	357,300	351,601	366,724	335,989	287,637	298,666	309,621	289,134	278,953	260,263	281,140	235,634	252,640
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
Current ratio		4.05	5.19	4.20	5.02	4.14	4.91	4.47	4.42	3.44	3.05	3.12	3.56	2.63	3.16	3.59	3.70	3.64	3.20	3.17	2.67

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 been fluctuating over the past few quarters. The current ratio measures the company's ability to meet its short-term financial obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

In the most recent quarter ending August 31, 2024, the current ratio stood at 4.05, which suggests that the company had $4.05 in current assets for every $1 in current liabilities. This demonstrates a healthy liquidity position and indicates that Simply Good Foods Co is in a strong financial position to meet its short-term obligations.

The trend in the current ratio over the past few quarters has been generally positive, with ratios consistently above 3. This indicates that the company has maintained a strong liquidity position and has been able to cover its short-term liabilities comfortably.

However, it's important to note that in some quarters, such as in August 27, 2022, and November 27, 2021, the current ratio dipped below 3, which may be a cause for concern as it suggests a potential liquidity strain during those periods.

Overall, based on the current ratio trend, Simply Good Foods Co seems to have a solid liquidity position, but investors and stakeholders should monitor future changes in the ratio to ensure the company remains capable of meeting its short-term financial obligations.