Cal-Maine Foods Inc (CALM)
Cash ratio
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 237,878 | 367,123 | 361,783 | 360,343 | 292,824 | 221,614 | 178,635 | 136,021 | 59,084 | 15,589 | 15,484 | 16,684 | 57,352 | 52,917 | 47,308 | 42,809 | 78,130 | 67,753 | 11,248 | 46,386 |
| Short-term investments | US$ in thousands | 574,499 | 327,720 | 206,045 | 249,619 | 355,090 | 423,418 | 200,714 | 145,784 | 115,429 | 81,125 | 69,672 | 73,666 | 112,158 | 127,771 | 124,621 | 150,524 | 154,163 | 80,863 | 123,275 | 189,700 |
| Total current liabilities | US$ in thousands | 227,743 | 215,689 | 153,787 | 126,382 | 182,731 | 313,060 | 306,549 | 230,431 | 184,674 | 121,373 | 116,388 | 97,543 | 90,097 | 100,804 | 94,118 | 77,879 | 93,183 | 89,660 | 102,848 | 75,489 |
| Cash ratio | 3.57 | 3.22 | 3.69 | 4.83 | 3.55 | 2.06 | 1.24 | 1.22 | 0.94 | 0.80 | 0.73 | 0.93 | 1.88 | 1.79 | 1.83 | 2.48 | 2.49 | 1.66 | 1.31 | 3.13 |
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 of Cal-Maine Foods Inc has shown fluctuations over the past years, ranging from 0.73 to 4.83. The cash ratio measures a company's ability to meet its short-term liabilities using cash and cash equivalents. A higher cash ratio indicates that the company has a greater ability to cover its short-term obligations.
In this case, the cash ratio has generally been above 1, which suggests that Cal-Maine Foods Inc has had a sufficient amount of cash and cash equivalents to cover its short-term liabilities. The peak ratio of 4.83 in September 2, 2023, indicates a strong liquidity position at that point in time.
However, it's worth noting that the ratio has fluctuated over time, which could be influenced by various factors such as changes in operating activities, investments, and financing decisions. Overall, the trend in the cash ratio for Cal-Maine Foods Inc indicates a reasonable level of liquidity, but ongoing monitoring is important to ensure the company's ability to meet its short-term obligations.