ConAgra Foods Inc (CAG)
Current ratio
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,071,000 | 3,149,500 | 3,149,500 | 3,385,000 | 3,385,000 |
| Total current liabilities | US$ in thousands | 4,317,000 | 3,241,800 | 3,241,800 | 4,440,700 | 4,440,700 |
| Current ratio | 0.71 | 0.97 | 0.97 | 0.76 | 0.76 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,071,000K ÷ $4,317,000K
= 0.71
The current ratio of ConAgra Foods Inc. demonstrates variability across the specified periods, reflecting shifts in short-term liquidity positioning. As of May 28, 2023, and May 31, 2023, the current ratio was consistently recorded at 0.76, indicating that the company's current assets were 76% of its current liabilities during this period. This level suggests a less than complete coverage of short-term obligations solely through current assets, which could imply potential liquidity concerns if this trend persists.
Moving forward to May 26, 2024, and May 31, 2024, the current ratio increased to 0.97, nearing a more balanced liquidity position where current assets nearly equaled current liabilities. This improvement indicates enhanced short-term liquidity, potentially reflecting better management of current assets or reductions in current liabilities.
However, by May 31, 2025, the current ratio declined to 0.71, falling below the 1.0 threshold. This decrease signifies a deterioration in short-term liquidity, with current assets covering only 71% of current liabilities. Such a level may suggest increased liquidity risks, potentially impacting the company's ability to fulfill its short-term obligations without resorting to asset liquidations or obtaining additional financing.
Overall, the analysis of the current ratio over this period indicates periods of liquidity tightening followed by modest improvement and subsequent weakening. This fluctuation emphasizes the importance of ongoing liquidity management and the potential need to address factors contributing to the decline observed in 2025.
Peer comparison
May 31, 2025