Current liabilities turnover just like inventory. Generally, you pay current liabilities off within a year (ie vendors) but your business creates new current liabilities. Cash flow is not a problem with JJSF. The problem (if you want to call it a problem) is the CEO IMHO is not making good use of the hoard of cash on hand. Back in 1996 he had lofty goals to have 1 billion in sales by 2006. IMHO the recent deep recession has made him become too conservative with acquisitions. JJSF is sitting with $125 million in cash and has a $50 million untapped credit line. If I was CEO I would be very aggressive now and use the cash on hand and tap the credit line and buy a solid acquisition in the $175 million range. If let's say they buy a co for $175 million at 12x earnings that adds about 80 cents in EPS.