Simply Good Foods Co (SMPL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.73 | 3.25 | 2.59 | 3.01 | 2.63 | 2.63 | 1.96 | 1.69 | 1.58 | 1.99 | 1.64 | 2.13 | 2.34 | 2.51 | 2.65 | 2.00 | 1.83 | 1.50 | 6.47 | 7.39 |
| 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 |
Simply Good Foods Co has shown strong liquidity positions over the periods analyzed, as indicated by consistently high current ratios ranging from 2.63 to 5.02. The company has generally maintained more than enough current assets to cover its short-term liabilities.
The quick ratios have also been robust, ranging from 1.58 to 3.25, suggesting that the company has a sufficient buffer of highly liquid assets to quickly meet its short-term obligations.
Furthermore, the cash ratios, varying from 0.44 to 1.54, demonstrate that Simply Good Foods Co has a solid ability to pay off its current liabilities using only its cash and cash equivalents.
Overall, the consistently high values of these liquidity ratios indicate that Simply Good Foods Co has a strong financial position with ample liquidity to cover its short-term obligations and unexpected expenses across the periods analyzed.
Additional liquidity measure
| 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 conversion cycle | days | 70.62 | 77.09 | 73.20 | 74.07 | 72.98 | 83.00 | 73.87 | 71.02 | 69.16 | 83.68 | 64.63 | 61.10 | 62.04 | 61.53 | 60.01 | 78.06 | 88.34 | 108.29 | 57.49 | 62.43 |
The cash conversion cycle of Simply Good Foods Co has shown fluctuation over the past several periods. The cash conversion cycle is a measure of how long it takes a company to convert its investments in inventory and other resources into cash flows from sales.
The company's cash conversion cycle ranged from a low of 57.49 days to a high of 108.29 days over the periods analyzed. A shorter cash conversion cycle indicates that the company is able to quickly turn its investments in inventory into cash, which is generally more favorable as it signifies efficient operations and management of working capital.
The longest cash conversion cycle of 108.29 days in November 2019 may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. Conversely, the shortest cycle of 57.49 days in August 2019 signals a period of efficient working capital management.
Overall, Simply Good Foods Co should aim to continuously monitor and optimize its cash conversion cycle to ensure efficient use of resources and maximize cash flow generation. It is advisable for the company to focus on streamlining operations, improving inventory turnover, and enhancing receivables and payables management to drive a shorter cash conversion cycle and improve overall financial performance.