Cal-Maine Foods Inc (CALM)
Cash ratio
| May 31, 2025 | Jun 1, 2024 | May 31, 2024 | Jun 3, 2023 | May 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 500,392 | 237,878 | 237,878 | 292,824 | 292,824 |
| Short-term investments | US$ in thousands | 892,708 | 574,499 | 574,499 | 355,090 | 355,090 |
| Total current liabilities | US$ in thousands | 308,371 | 227,743 | 227,743 | 182,731 | 182,731 |
| Cash ratio | 4.52 | 3.57 | 3.57 | 3.55 | 3.55 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($500,392K
+ $892,708K)
÷ $308,371K
= 4.52
The cash ratio of Cal-Maine Foods Inc exhibits a notable upward trend across the specified periods. As of May 31, 2023, the cash ratio stood at 3.55, maintaining the same level through June 3, 2023. On May 31, 2024, the ratio slightly increased to 3.57, a marginal rise evidenced again on June 1, 2024. The most recent measurement, as of May 31, 2025, indicates a significant increase to 4.52.
This progression suggests that the company has maintained a robust liquidity position relative to its current liabilities over the periods analyzed. The consistent stability from 2023 to 2024, followed by a marked increase in 2025, reflects an improvement in the company's immediate liquidity profile. The elevated cash ratio, particularly the rise to over 4.5 in 2025, indicates that Cal-Maine Foods Inc possesses sufficient cash and cash equivalents to cover more than four times its current liabilities, highlighting a conservative liquidity approach and a strong short-term financial cushion.