Winnebago Industries Inc (WGO)
Cash ratio
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 309,900 | 282,200 | 434,563 | 292,575 | 37,431 |
| Short-term investments | US$ in thousands | — | — | 28,821 | 27,838 | — |
| Total current liabilities | US$ in thousands | 396,000 | 522,100 | 407,276 | 300,390 | 197,744 |
| Cash ratio | 0.78 | 0.54 | 1.14 | 1.07 | 0.19 |
August 26, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($309,900K
+ $—K)
÷ $396,000K
= 0.78
The cash ratio of Winnebago Industries, Inc. has shown fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it indicates a stronger ability to meet short-term obligations.
In the most recent fiscal year, as of August 26, 2023, Winnebago Industries, Inc. had a cash ratio of 0.88, indicating that the company had $0.88 in cash and cash equivalents for every dollar of current liabilities. This suggests a moderate ability to cover short-term obligations with available cash.
Comparing this to the prior years, the cash ratio was 0.60 in 2022, 1.14 in 2021, 1.03 in 2020, and 0.26 in 2019, showing a fluctuating trend. The significant decrease in the cash ratio in 2022 may warrant further investigation into the company's liquidity management.
Overall, while the cash ratio of Winnebago Industries, Inc. has varied, the company has generally maintained a level of liquidity to cover its short-term obligations, with the most recent ratio indicating an improvement in the company's ability to meet its current liabilities with available cash. Nonetheless, it would be important to assess the reasons behind the fluctuations to fully evaluate the company's liquidity position.
Peer comparison
Aug 26, 2023