Cal-Maine Foods Inc (CALM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,968,110 | 1,983,280 | 1,424,600 | 1,343,480 | 1,241,840 | 1,241,840 | 1,217,590 | 1,217,590 | 1,063,930 | 1,063,930 | 1,064,060 | 1,064,060 | 1,124,920 | 1,124,920 | 1,193,370 | 1,193,370 | 974,010 | 974,010 | 778,888 | 778,888 |
| 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 |
| Current ratio | 6.38 | 3.86 | 5.46 | 4.13 | 5.45 | 5.45 | 5.65 | 5.65 | 6.92 | 6.92 | 8.42 | 8.42 | 6.16 | 6.16 | 3.81 | 3.81 | 3.18 | 3.18 | 3.38 | 3.38 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,968,110K ÷ $308,371K
= 6.38
The analysis of Cal-Maine Foods Inc.'s current ratio over the specified periods indicates notable fluctuations, reflecting changes in the company's short-term liquidity position.
During the fiscal year ending November 26, 2022, the current ratio was relatively stable around 3.38, suggesting a solid ability to cover short-term liabilities with current assets. This stability persisted through the following months until November 30, 2022, when it decreased slightly to 3.18, indicating a minor reduction in liquidity.
A significant improvement is observed from February 25, 2023, through May 31, 2023, where the current ratio increased markedly to 6.16, more than doubling the previous levels and signaling a considerably stronger liquidity position. This upward trend continued into the subsequent period ending August 31, 2023, with the current ratio reaching a peak of 8.42, indicating a robust short-term financial health at this point.
However, the ratio's trend reversed somewhat afterward, declining to 6.92 by November 30, 2023, and maintaining a similar level through December 2, 2023. The ratio then decreased further to 5.65 as of February 29, 2024, but remained above 5 in subsequent periods, reflecting continued strong liquidity, albeit at a somewhat reduced level.
In the most recent data points, the current ratio shows a slight decline to 3.86 as of February 28, 2025, followed by an increase to 6.38 by May 31, 2025. This pattern suggests periods of both tightening and strengthening of liquidity, with the current ratio generally staying above 3, indicating that the company maintains a reasonable buffer to meet its short-term obligations.
Overall, the company's current ratio has demonstrated significant variability over time, characterized by periods of high liquidity, particularly from mid-2023 to early 2024, and more recently, a stabilization at elevated levels compared to the initial periods. These fluctuations may reflect changes in working capital management, asset composition, or short-term strategic decisions, but in general, the ratios remain within a range considered indicative of a healthy liquidity position.