Winnebago Industries Inc (WGO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.44 | 2.45 | 2.84 | 2.69 | 2.52 | 2.45 | 2.50 | 2.42 | 2.10 | 2.09 | 2.18 | 2.18 | 2.60 | 2.63 | 2.69 | 2.52 | 2.38 | 2.31 | 2.25 | 2.20 |
| Quick ratio | 1.29 | 1.30 | 1.44 | 1.18 | 1.26 | 1.09 | 1.17 | 1.09 | 1.03 | 1.14 | 1.11 | 1.11 | 1.76 | 1.76 | 1.85 | 1.70 | 1.80 | 1.51 | 1.22 | 1.09 |
| Cash ratio | 0.82 | 0.79 | 0.75 | 0.63 | 0.78 | 0.57 | 0.53 | 0.62 | 0.54 | 0.44 | 0.29 | 0.49 | 1.14 | 1.16 | 1.13 | 0.96 | 1.07 | 0.79 | 0.49 | 0.41 |
Winnebago Industries Inc's liquidity ratios reflect its ability to meet short-term obligations efficiently. The current ratio has been relatively stable over the periods, averaging around 2.4. This indicates that the company has more than enough current assets to cover its current liabilities, providing a good cushion for meeting short-term obligations.
The quick ratio, a more stringent measure of liquidity, has also remained fairly consistent, averaging around 1.3. Although slightly lower than the current ratio, the quick ratio still shows that Winnebago has an adequate level of liquid assets to cover its short-term liabilities without relying on inventory.
Further scrutinizing Winnebago's liquidity position, the cash ratio has varied significantly over the periods. Despite some fluctuations, it is worth noting that the company's cash position has generally been improving, with recent periods showing a higher level of cash relative to current liabilities. This suggests an enhanced ability to meet immediate obligations using cash on hand, which is a positive sign for financial stability.
In conclusion, Winnebago Industries Inc maintains a healthy liquidity position overall, with consistently strong current and quick ratios. The improving trend in the cash ratio highlights the company's increasing liquidity strength, which bodes well for its short-term financial health.
Additional liquidity measure
| 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 conversion cycle | days | 60.75 | 63.89 | 69.13 | 65.47 | 56.84 | 59.06 | 57.49 | 51.89 | 44.56 | 50.64 | 57.12 | 51.86 | 44.05 | 44.83 | 50.18 | 54.65 | 42.73 | 47.57 | 54.01 | 63.37 |
Winnebago Industries Inc's cash conversion cycle, a key measure of efficiency in managing its working capital, has shown fluctuation over the past few quarters. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
Analyzing the data provided, we can see that the cash conversion cycle ranged from a low of 42.73 days to a high of 69.13 days over the given period. A decreasing trend was observed in the cycle from November 2020 to August 2022, indicating improving efficiency in managing working capital. However, from August 2022 to August 2024, the cycle increased, suggesting a potential slowdown in converting resources into cash.
It is essential for Winnebago Industries Inc to monitor and manage its cash conversion cycle effectively to ensure optimal use of resources and improve cash flow. By analyzing the components of the cycle - including days inventory outstanding, days sales outstanding, and days payable outstanding - the company can identify areas for improvement and implement strategies to enhance efficiency in its working capital management.