Simply Good Foods Co (SMPL)

Quick ratio

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Cash	US$ in thousands	87,715	67,494	75,345	95,847	266,341
Short-term investments	US$ in thousands	—	—	—	3,644	—
Receivables	US$ in thousands	145,078	132,667	111,456	89,740	44,240
Total current liabilities	US$ in thousands	89,857	102,248	113,664	71,478	48,032
Quick ratio		2.59	1.96	1.64	2.65	6.47

August 26, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($87,715K + $—K + $145,078K) ÷ $89,857K
= 2.59

The Quick Ratio of Simply Good Foods Co has displayed fluctuations over the past five years. In 2019, the quick ratio was notably high at 6.65, indicating a strong ability to meet short-term obligations using the most liquid assets. However, in 2020, there was a substantial decrease to 2.81, followed by a further decline to 1.77 in 2021, possibly indicating a reduction in the company's ability to cover current liabilities with its quick assets. The ratio improved in 2022 to 2.21 but saw a significant increase to 2.84 in 2023, suggesting a resurgence in the company's ability to meet short-term obligations. This trend may reflect changes in the company's liquidity position and efficiency in managing its working capital.