United Natural Foods Inc (UNFI)
Liquidity ratios
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.53 | 1.54 | 1.44 | 1.50 | 1.56 | 1.70 | 1.57 | 1.67 | 1.51 | 1.49 | 1.43 | 1.58 | 1.59 | 1.66 | 1.56 | 1.50 | 1.68 | 1.69 | 1.69 | 1.73 |
| Quick ratio | 0.45 | 0.42 | 0.40 | 0.43 | 0.45 | 0.56 | 0.53 | 0.54 | 0.51 | 0.49 | 0.47 | 0.02 | 0.52 | 0.52 | 0.50 | 0.02 | 0.02 | 0.02 | 0.54 | 0.53 |
| Cash ratio | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
United Natural Foods Inc. has exhibited relatively stable current ratios over the past eight quarters, with values ranging from 1.44 to 1.70. This indicates that the company has generally maintained a healthy level of current assets to cover its short-term liabilities. However, a declining trend is noticeable from Q1 2023 to Q2 2024, which may raise concerns about the company's ability to meet its short-term obligations in the near future.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a consistent but slightly declining trend, with values ranging from 0.49 to 0.63. While the quick ratio is lower than the current ratio, the decreasing values suggest that United Natural Foods Inc. may face challenges in meeting its short-term obligations without relying on inventory liquidation.
The cash ratio, which represents the most conservative liquidity measure by considering only cash and cash equivalents, shows a relatively stable but low trend, ranging from 0.08 to 0.12. This indicates that the company may have limited cash on hand to cover its immediate liabilities, potentially pointing to a need for improved cash management strategies.
Overall, based on the liquidity ratios analyzed, United Natural Foods Inc. appears to have maintained a decent liquidity position, as reflected by the current ratio above 1. However, the declining trends in the quick ratio and the relatively low cash ratio highlight potential liquidity challenges that the company may need to address in the future.
Additional liquidity measure
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 23.20 | 25.71 | 20.44 | 21.07 | 22.54 | 29.09 | 24.61 | 28.73 | 27.20 | 27.07 | 24.83 | 10.92 | 24.98 | 31.00 | 29.40 | 6.39 | 14.68 | 11.94 | 30.96 | 40.13 |
The cash conversion cycle of United Natural Foods Inc. has shown fluctuations over the past eight quarters, ranging from a low of 17.85 days in Q4 2023 to a high of 28.77 days in Q1 2023. The company's ability to convert its resources into cash has generally improved since Q1 2023, with the cycle decreasing from 28.77 days to 22.14 days in Q1 2024. This suggests that United Natural Foods Inc. has been more efficient in managing its operating cycle and converting inventory into sales and ultimately into cash over the recent quarters. However, the cycle increased slightly in Q2 2024 to 20.14 days, indicating a slight delay in the company's cash conversion process compared to the previous quarter. Overall, United Natural Foods Inc. should continue to monitor and actively manage its cash conversion cycle to ensure optimal efficiency in its operations and cash flow management.