ConAgra Foods Inc (CAG)
Quick ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 77,700 | 77,700 | 93,300 | 93,300 | 83,300 |
| Short-term investments | US$ in thousands | — | — | — | 600 | — |
| Receivables | US$ in thousands | — | 871,800 | — | 952,800 | — |
| Total current liabilities | US$ in thousands | 3,241,800 | 3,241,800 | 4,440,700 | 4,440,700 | 3,518,800 |
| Quick ratio | 0.02 | 0.29 | 0.02 | 0.24 | 0.02 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($77,700K
+ $—K
+ $—K)
÷ $3,241,800K
= 0.02
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term financial obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities.
In the case of ConAgra Foods Inc, the quick ratio has seen fluctuations over the past several years. As of May 31, 2022, the quick ratio was a very low 0.02, indicating that the company had minimal liquid assets relative to its current liabilities. This could signal potential financial strain in meeting short-term obligations.
By May 28, 2023, the quick ratio had improved to 0.24, suggesting that ConAgra had increased its liquidity position compared to the previous year. However, this ratio dropped back down to 0.02 by May 31, 2023, which may raise concerns about the company's ability to cover short-term debts with its available liquid assets.
In the following years, there was a positive trend in the quick ratio for ConAgra Foods Inc. As of May 26, 2024, the quick ratio was 0.29, indicating a healthier liquidity position compared to the previous years. However, by May 31, 2024, the quick ratio fell back to a low of 0.02, suggesting that the company's liquidity had once again decreased.
Overall, the quick ratio analysis reveals that ConAgra Foods Inc has experienced fluctuations in its ability to cover short-term liabilities with liquid assets. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations in a timely manner.
Peer comparison
May 31, 2024