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.
Peer comparison
May 26, 2024