Simply Good Foods Co (SMPL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 132,530 | 208,681 | 135,876 | 121,391 | 87,715 | 68,794 | 63,207 | 54,144 | 67,494 | 56,720 | 51,469 | 35,447 | 75,345 | 90,173 | 91,307 | 91,476 | 95,847 | 111,134 | 46,115 | 72,711 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,644 | — | — | — |
| Receivables | US$ in thousands | 150,721 | 146,281 | 147,513 | 135,561 | 145,078 | 145,430 | 148,250 | 158,883 | 132,667 | 146,377 | 118,212 | 125,195 | 111,456 | 118,373 | 97,329 | 97,887 | 89,740 | 64,440 | 89,966 | 69,593 |
| 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 |
| 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 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($132,530K
+ $—K
+ $150,721K)
÷ $108,615K
= 2.61
The quick ratio of Simply Good Foods Co has fluctuated over the past several periods, ranging from a low of 1.50 to a high of 3.83. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
In general, a higher quick ratio is favorable as it indicates a stronger ability to meet short-term obligations without relying on inventory sales. Simply Good Foods Co's quick ratio has generally been above 2, indicating a healthy liquidity position. However, the quick ratio decreased in some periods, suggesting fluctuations in the company's liquidity position over time.
Investors and analysts should monitor the trend of the quick ratio over time to assess the company's liquidity and ability to manage short-term financial obligations effectively.
Peer comparison
Aug 31, 2024