ConAgra Foods Inc (CAG)

Cash ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cash and cash equivalents	US$ in thousands	77,700	93,300	83,300	79,200	553,300
Short-term investments	US$ in thousands	—	600	—	—	—
Total current liabilities	US$ in thousands	3,241,800	4,440,700	3,518,800	3,306,200	3,287,400
Cash ratio		0.02	0.02	0.02	0.02	0.17

May 26, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($77,700K + $—K) ÷ $3,241,800K
= 0.02

The cash ratio of ConAgra Foods Inc has remained relatively stable at 0.02 for the fiscal years ending in May 26, 2024, May 28, 2023, May 29, 2022, and May 30, 2021. However, in the fiscal year ending in May 31, 2020, there was a significant increase in the cash ratio to 0.17.

A cash ratio of 0.02 indicates that for every $1 of current liabilities, ConAgra Foods Inc has $0.02 in cash available to cover its short-term obligations. The lower cash ratio may suggest lower liquidity and ability to meet its short-term financial obligations solely from its cash reserves.

The spike in the cash ratio in May 31, 2020, to 0.17 indicates a significant increase in ConAgra's liquidity position compared to the other years. This could be attributed to factors such as increased cash reserves, improved cash management, or a reduction in current liabilities during that period.

Overall, while the cash ratio for most years has been consistently low at 0.02, the notable increase in 2020 showcases an improvement in ConAgra's short-term liquidity position, potentially indicating a stronger ability to meet its immediate financial obligations.