Winnebago Industries Inc (WGO)
Quick ratio
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 309,900 | 282,200 | 434,563 | 292,575 | 37,431 |
| Short-term investments | US$ in thousands | — | — | 28,821 | 27,838 | — |
| Receivables | US$ in thousands | 189,200 | 254,124 | 253,808 | 220,798 | 158,049 |
| Total current liabilities | US$ in thousands | 396,000 | 522,100 | 407,276 | 300,390 | 197,744 |
| Quick ratio | 1.26 | 1.03 | 1.76 | 1.80 | 0.99 |
August 26, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($309,900K
+ $—K
+ $189,200K)
÷ $396,000K
= 1.26
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. It is calculated by dividing the sum of cash, cash equivalents, and marketable securities by current liabilities.
Looking at the quick ratio of Winnebago Industries, Inc. over the past five years, we observe fluctuations in this liquidity measure. In fiscal year 2023, the quick ratio stands at 1.33, indicating that the company has $1.33 in liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year's quick ratio of 1.09.
The quick ratio of 1.33 suggests that Winnebago Industries, Inc. has a strong ability to meet its short-term obligations with its liquid assets. A ratio above 1 indicates that the company has an adequate level of liquid assets relative to its current liabilities. The improvement in the quick ratio from the previous year may signify better management of working capital and a stronger financial position.
However, it is essential to note that a quick ratio significantly higher than 1 may also indicate an excessive level of idle assets, which could be invested more effectively to generate returns. Furthermore, it is crucial to analyze other liquidity and solvency measures in conjunction with the quick ratio to gain a comprehensive understanding of Winnebago Industries, Inc.'s financial health.
Peer comparison
Aug 26, 2023