Cal-Maine Foods Inc (CALM)
Cash ratio
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 237,878 | 292,824 | 59,084 | 57,352 | 78,130 |
| Short-term investments | US$ in thousands | 574,499 | 355,090 | 115,429 | 112,158 | 154,163 |
| Total current liabilities | US$ in thousands | 227,743 | 182,731 | 184,674 | 90,097 | 93,183 |
| Cash ratio | 3.57 | 3.55 | 0.94 | 1.88 | 2.49 |
June 1, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($237,878K
+ $574,499K)
÷ $227,743K
= 3.57
The cash ratio for Cal-Maine Foods Inc has shown fluctuations over the past five years. As of June 1, 2024, the cash ratio stands at 3.57, indicating an increase from the previous year when it was 3.55. This suggests the company has significantly more cash and cash equivalents to cover its current liabilities compared to the prior year.
In contrast, the cash ratio was notably lower at 0.94 as of May 28, 2022, indicating a potential liquidity risk as the company had insufficient cash to cover its short-term obligations. However, there was improvement in the following year as the ratio increased to 1.88 by May 29, 2021. This signifies a healthier financial position in terms of liquidity.
Looking back further, the cash ratio was at 2.49 on May 30, 2020, suggesting the company had a comfortable cushion of cash reserves relative to its short-term liabilities at that time. Overall, while the trend in the cash ratio has been fluctuating, the recent increase indicates an improvement in Cal-Maine Foods Inc's ability to meet its short-term obligations with available cash resources.