Winnebago Industries Inc (WGO)

Winnebago Industries Inc's liquidity ratios have shown fluctuating trends over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, indicating a healthy liquidity position. However, there has been some variability in this ratio, with the highest being 2.84 and the lowest at 1.91.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed fluctuating patterns. Despite some variability, the quick ratio has generally been above 1, suggesting that the company has an acceptable level of liquid assets to cover its short-term liabilities even without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, has exhibited significant variability over the quarters. The ratio has fluctuated between 0.15 and 1.16, indicating that the company's ability to cover its current liabilities with cash on hand has varied over time.

Overall, while Winnebago Industries Inc generally maintains healthy liquidity ratios, the fluctuations indicate a degree of variability in its short-term liquidity position. It is important for investors and stakeholders to monitor these ratios closely to assess the company's ongoing ability to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Winnebago Industries Inc has shown some variability over the past few periods, ranging from a low of 42.73 days to a high of 69.13 days. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates more efficient operations and better liquidity management.

Analyzing the trends in Winnebago's cash conversion cycle, we observe some fluctuations over time. The cycle peaked at 69.13 days in February 2024, indicating a longer time for the company to convert its resources into cash. This might suggest issues with inventory management, collection of receivables, or production delays during that period.

On the other hand, the company's lowest cash conversion cycle of 42.73 days in August 2020 indicates a more efficient use of resources and quicker cash conversion. This could be attributed to effective inventory management, timely collection of receivables, or streamlined production processes during that period.

Overall, Winnebago Industries Inc should aim to consistently monitor and improve its cash conversion cycle to enhance operational efficiency and maintain healthy liquidity levels. By analyzing the factors contributing to fluctuations in the cycle, the company can implement strategies to optimize working capital management and improve overall financial performance.