SpartanNash Co (SPTN)

Liquidity ratios

Dec 31, 2023 Oct 7, 2023 Jul 15, 2023 Apr 22, 2023 Dec 31, 2022 Oct 8, 2022 Apr 23, 2022 Dec 31, 2021 Oct 9, 2021 Jul 17, 2021 Apr 24, 2021 Dec 31, 2020 Sep 30, 2020 Jul 11, 2020 Apr 18, 2020 Dec 31, 2019 Oct 5, 2019 Jul 13, 2019 Apr 20, 2019 Dec 31, 2018
Current ratio 1.63 1.59 1.62 1.69 1.51 1.63 1.56 1.46 1.43 1.53 1.65 1.47 1.58 1.56 1.54 1.76 1.72 1.76 1.90 2.10
Quick ratio 0.67 0.65 0.66 0.67 0.61 0.03 0.62 0.57 0.04 0.04 0.59 0.55 0.04 0.05 0.03 0.04 0.04 0.04 0.04 0.04
Cash ratio 0.03 0.03 0.03 0.03 0.04 0.03 0.02 0.02 0.04 0.04 0.04 0.03 0.04 0.05 0.03 0.04 0.04 0.04 0.04 0.04

SpartanNash Co's liquidity ratios fluctuated over the period under review. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, has been relatively stable, generally staying above 1.5. This indicates that SpartanNash Co has had an acceptable level of current assets to meet its current obligations.

In contrast, the quick ratio, also known as the acid-test ratio, has shown more variability, with a significant drop observed in some periods. This ratio excludes inventory from current assets and focuses on the most liquid assets that can be quickly converted to cash to cover immediate liabilities. A quick ratio of less than 1 may raise concerns about the company's ability to meet its short-term obligations without relying on inventory sales.

The cash ratio, representing the proportion of cash and cash equivalents to current liabilities, has generally been low, hovering around 0.03 to 0.05. While this ratio reflects the company's ability to cover its current debts solely with cash, SpartanNash Co appears to have limited cash reserves relative to its current liabilities.

Overall, SpartanNash Co's liquidity position, as reflected in these ratios, suggests a moderate level of liquidity, with the current ratio indicating a healthier liquidity position compared to the quick and cash ratios. The company may need to carefully manage its working capital and cash flows to ensure it can meet its short-term obligations efficiently.

Additional liquidity measure

Dec 31, 2023 Oct 7, 2023 Jul 15, 2023 Apr 22, 2023 Dec 31, 2022 Oct 8, 2022 Apr 23, 2022 Dec 31, 2021 Oct 9, 2021 Jul 17, 2021 Apr 24, 2021 Dec 31, 2020 Sep 30, 2020 Jul 11, 2020 Apr 18, 2020 Dec 31, 2019 Oct 5, 2019 Jul 13, 2019 Apr 20, 2019 Dec 31, 2018
Cash conversion cycle days 20.33 19.17 19.20 18.61 19.41 6.13 19.69 18.41 2.84 4.60 21.42 17.51 4.03 2.99 0.35 6.60 6.95 8.46 10.54 10.29

The cash conversion cycle of SpartanNash Co has shown fluctuations over the past years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

Looking at the data provided, we can see that the cash conversion cycle has varied significantly, ranging from a low of -0.35 days to a high of 21.42 days over the period studied. A negative cash conversion cycle indicates that the company is able to sell its inventory and collect cash from customers before having to pay suppliers, which is a favorable position.

In recent years, there has been some volatility in the cash conversion cycle, with some periods showing longer cycles than others. The company experienced a notable improvement in efficiency in cash management from late 2021 to early 2022, with the cycle reducing significantly. However, this improvement was not sustained, as the cycle increased again in subsequent periods.

Overall, SpartanNash Co should continue to monitor and manage its cash conversion cycle effectively to ensure optimal liquidity and operating efficiency. Identifying trends and understanding the factors influencing the cycle can help the company make informed decisions to improve cash flow and working capital management.