Simply Good Foods Co (SMPL)

Current 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
Total current assets	US$ in thousands	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	357,607	339,189
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
Current ratio		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	7.45	8.63

February 24, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $435,842K ÷ $103,661K
= 4.20

The current ratio of Simply Good Foods Co has shown fluctuations over the past few quarters. The 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.

Looking at the trend, the current ratio has generally been above 3, which is considered a healthy level for most businesses. The ratio peaked at 8.63 in November 2019, indicating a very strong liquidity position at that time. However, it then experienced a downward trend before stabilizing around 3-5 range in recent quarters.

It is noteworthy that a current ratio of over 4 implies that Simply Good Foods Co has more than enough current assets to cover its short-term liabilities, providing a comfortable buffer for any unexpected financial challenges. Overall, the current ratio trend suggests that the company has maintained a reasonably strong liquidity position over the periods analyzed.