Lancaster Colony has a quick ratio of 1.47. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lancaster Colony's Quick Ratio or its related term are showing as below:
LANC'
s Quick Ratio Range Over the Past 10 Years
Min: 1.09 Med: 2.35 Max: 4.58
Current: 1.47
During the past 13 years, Lancaster Colony's highest Quick Ratio was 4.58. The lowest was 1.09. And the median was 2.35.
LANC's Quick Ratio is ranked better than 64.59% of 1906
companies
in the Consumer Packaged Goods industry
Industry Median: 1.03
vs LANC: 1.47
Lancaster Colony Quick Ratio Historical Data
The historical data trend for Lancaster Colony's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Lancaster Colony's Quick Ratio
For the Packaged Foods subindustry, Lancaster Colony's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lancaster Colony's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lancaster Colony's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lancaster Colony's Quick Ratio falls into.
Lancaster Colony Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Lancaster Colony's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lancaster Colony (NAS:LANC) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Lancaster Colony Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lancaster Colony's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lancaster Colony (Lancaster Colony) Business Description
Lancaster Colony Corp is a manufacturer and marketer of speciality food products. The company's segments include Retail and Foodservice. By product segment, the company divides its portfolio into non frozen (roughly 70% of net sales) and frozen food. The key products and brands are salad dressing and sauces (Cardini's, Girard's, Marzetti), frozen garlic breads (New York Brand Bakery, Mamma Bella), vegetable dips and fruit dips (Marzetti), frozen parkerhouse-style yeast rolls and dinner rolls (Sister Schubert's, Mary B's), premium dry egg noodles (Amish Kitchen), frozen speciality noodles (Reames, Aunt Vi's), croutons and salad toppings, flatbread wraps, and pizza crusts.
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