Simply Good Foods Co (SMPL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.61 | 3.83 | 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 |
| Cash ratio | 1.22 | 2.25 | 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 |
The liquidity ratios of Simply Good Foods Co show a strong ability to meet short-term obligations and manage cash flow effectively.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently above 3.0 in the recent periods, indicating a healthy liquidity position. The ratio has shown a slight fluctuation but generally demonstrates that Simply Good Foods Co has more than enough current assets to cover its current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a strong liquidity position for the company. With values consistently above 2.0 in the recent periods, Simply Good Foods Co shows a robust ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents to current liabilities, also indicates a solid liquidity position for Simply Good Foods Co. The company has maintained values above 1.0 in most periods, indicating that it has sufficient cash reserves to cover its immediate obligations.
Overall, the liquidity ratios of Simply Good Foods Co suggest that the company has a strong financial position with ample liquidity to meet its short-term obligations and fund its operations effectively. This indicates that Simply Good Foods Co is well-positioned to weather any short-term financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 78.51 | 64.82 | 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 |
The cash conversion cycle of Simply Good Foods Co has shown variability over the periods analyzed. The average cash conversion cycle over the time frame appears to be around 73 days, indicating the company takes approximately 73 days to convert its resource inputs into cash flows from sales.
The company's cash conversion cycle fluctuated between 61 and 108 days over the periods analyzed, signifying changes in the efficiency of its operating cycle in managing its cash inflows and outflows.
The shorter the cash conversion cycle, the better, as it implies that the company is able to quickly convert its investments in inventory and other resources into cash from sales. Conversely, a longer cash conversion cycle suggests potential inefficiencies in managing working capital.
Overall, analyzing the trends in the cash conversion cycle can provide insights into the company's operational efficiency, working capital management, and liquidity. Monitoring and managing this metric can help identify areas for improvement and optimize the company's cash flow processes.