Winnebago Industries Inc (WGO)
Quick ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 330,900 | 309,900 | 282,200 | 434,563 | 292,575 |
| Short-term investments | US$ in thousands | — | — | — | 28,821 | 27,838 |
| Receivables | US$ in thousands | 190,300 | 189,200 | 254,124 | 253,808 | 220,798 |
| Total current liabilities | US$ in thousands | 404,700 | 396,000 | 522,100 | 407,276 | 300,390 |
| Quick ratio | 1.29 | 1.26 | 1.03 | 1.76 | 1.80 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($330,900K
+ $—K
+ $190,300K)
÷ $404,700K
= 1.29
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities, with a higher value suggesting stronger short-term liquidity.
Looking at Winnebago Industries Inc's quick ratio over the past five years, we observe fluctuations in the trend. In 2020 and 2021, the quick ratio was relatively high at 1.80 and 1.76, respectively, indicating a sound ability to meet short-term obligations. However, in 2022, the quick ratio dropped to 1.03, suggesting a potential decline in short-term liquidity compared to the previous years.
The most recent quick ratio for 2023 and 2024 showed slight improvements at 1.26 and 1.29, respectively. Although these values are higher than 1, indicating the company's ability to cover short-term liabilities, it is essential to note that the ratio remains below the levels seen in 2020 and 2021.
Overall, Winnebago Industries Inc's quick ratio has demonstrated fluctuations over the past five years, with recent values indicating a reasonable ability to meet short-term obligations, emphasizing the importance of monitoring fluctuations in short-term liquidity for any potential challenges in meeting current liabilities.
Peer comparison
Aug 31, 2024