Cal-Maine Foods Inc (CALM)
Cash ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 500,392 | 497,239 | 140,296 | 181,667 | 237,878 | 237,878 | 367,123 | 367,123 | 361,783 | 361,783 | 360,343 | 360,343 | 292,824 | 292,824 | 221,614 | 221,614 | 178,635 | 178,635 | 136,021 | 136,021 |
| Short-term investments | US$ in thousands | 892,708 | 743,134 | 656,887 | 571,923 | 574,499 | 574,499 | 327,720 | 327,720 | 206,045 | 206,045 | 249,619 | 249,619 | 355,090 | 355,090 | 423,418 | 423,418 | 200,714 | 200,714 | 145,784 | 145,784 |
| Total current liabilities | US$ in thousands | 308,371 | 513,658 | 260,751 | 325,415 | 227,743 | 227,743 | 215,689 | 215,689 | 153,787 | 153,787 | 126,382 | 126,382 | 182,731 | 182,731 | 313,060 | 313,060 | 306,549 | 306,549 | 230,431 | 230,431 |
| Cash ratio | 4.52 | 2.41 | 3.06 | 2.32 | 3.57 | 3.57 | 3.22 | 3.22 | 3.69 | 3.69 | 4.83 | 4.83 | 3.55 | 3.55 | 2.06 | 2.06 | 1.24 | 1.24 | 1.22 | 1.22 |
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 demonstrates variability across the referenced periods, reflecting the company's liquidity position in terms of its ability to cover short-term obligations with cash and cash equivalents.
From late August 2022 to late November 2022, the cash ratio remained relatively stable, fluctuating narrowly around 1.22 to 1.24, indicating a consistent but modest liquidity buffer. Starting in late February 2023, the ratio increased significantly to 2.06 and remained at this elevated level through early March 2023, suggesting improved liquidity or a strategic increase in cash holdings.
A notable upward movement occurred by May 2023, with the ratio surging to 3.55, marking a substantial strengthening of liquidity. The ratio peaked at 4.83 in late August 2023, implying a highly liquid position with cash holdings exceeding short-term liabilities by nearly fivefold, which could be indicative of conservative cash management or strategic cash accumulation.
Subsequent periods show a slight decline, with the ratio decreasing to 3.69 by late November 2023, and further to 3.22 by late February 2024. These reductions may reflect increased current liabilities, a strategic deployment of cash, or shifts in cash management policies.
In mid-2024, the ratio rebounds to 3.57, with further fluctuations observed—dropping again to 2.32 by late August 2024 but recovering to an approximate 3.06 to 3.69 range towards late 2024 and early 2025. The ratio approaches 4.52 in May 2025, indicating a temporary resurgence in liquidity, before stabilizing around 2.41 in late February 2025.
Overall, the trend suggests that Cal-Maine Foods Inc maintains a healthy liquidity position, with the cash ratio typically well above 1, often exceeding 3, and peaking near 5. This indicates a conservative liquidity stance, providing a robust buffer against short-term obligations. The fluctuations in the ratio reflect operational and strategic adjustments over time, aligning with broader financial management practices aimed at balancing liquidity with other investment priorities.