SpartanNash Co (SPTN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 21,570 | 17,964 | 29,086 | 10,666 | 19,903 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 695,239 | 659,896 | 704,970 | 655,838 | 689,554 |
| Quick ratio | 0.03 | 0.03 | 0.04 | 0.02 | 0.03 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($21,570K
+ $—K
+ $—K)
÷ $695,239K
= 0.03
The quick ratio, also known as the acid-test ratio, reflects SpartanNash Co's ability to meet its short-term liabilities with its most liquid assets, excluding inventory.
From the data provided, we observe that SpartanNash Co's quick ratio has been consistently low, ranging from 0.02 to 0.04 over the years 2020 to 2024. This indicates that the company may have difficulty meeting its immediate obligations using its current quick assets alone.
A quick ratio below 1.0 suggests that SpartanNash Co may rely heavily on inventory or may have limited cash and marketable securities to cover its short-term liabilities. Investors and creditors may view this as a potential risk, signaling a need for SpartanNash Co to improve its liquidity position to ensure financial stability and meet its obligations efficiently.
Peer comparison
Dec 31, 2024