United Natural Foods has a quick ratio of 0.54. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for United Natural Foods's Quick Ratio or its related term are showing as below:
FRA:UN3'
s Quick Ratio Range Over the Past 10 Years
Min: 0.49 Med: 0.69 Max: 1.11
Current: 0.54
During the past 13 years, United Natural Foods's highest Quick Ratio was 1.11. The lowest was 0.49. And the median was 0.69.
FRA:UN3's Quick Ratio is ranked worse than 69.94% of 316
companies
in the Retail - Defensive industry
Industry Median: 0.89
vs FRA:UN3: 0.54
United Natural Foods Quick Ratio Historical Data
The historical data trend for United Natural Foods'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 United Natural Foods's Quick Ratio
For the Food Distribution subindustry, United Natural Foods'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.
United Natural Foods's Quick Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, United Natural Foods's Quick Ratio distribution charts can be found below:
* The bar in red indicates where United Natural Foods's Quick Ratio falls into.
United Natural Foods 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.
United Natural Foods's Quick Ratio for the fiscal year that ended in Jul. 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.
United Natural Foods (FRA:UN3) 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.
United Natural Foods Quick Ratio Related Terms
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United Natural Foods (FRA:UN3) Business Description
United Natural Foods Inc is a wholesale distributor of natural, organic and specialty foods and nonfood products across North America. The company's products consist of national, regional and private label brands grouped into grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. United Natural Foods serves various retail formats including conventional supermarket chains, natural product superstores, independent retail operators and foodservice channels such as e-commerce platforms. The company's operations are comprised of principal divisions: the wholesale division; the retail division; and other.
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