Cal-Maine Foods Inc (CALM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.45 | 5.65 | 6.92 | 8.42 | 6.16 | 3.81 | 3.18 | 3.38 | 3.58 | 4.31 | 4.13 | 4.72 | 5.77 | 5.19 | 5.25 | 6.08 | 5.60 | 4.97 | 4.36 | 6.66 |
| Quick ratio | 4.28 | 4.36 | 4.99 | 6.09 | 4.57 | 2.86 | 2.23 | 2.18 | 2.13 | 2.28 | 2.05 | 2.30 | 3.29 | 3.09 | 3.07 | 3.56 | 3.55 | 2.78 | 2.46 | 4.17 |
| 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 |
Cal-Maine Foods Inc's liquidity ratios have been fluctuating over the past few quarters. The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has ranged from a low of 3.18 to a high of 8.42. The company's current ratio has generally been above 2, indicating a strong ability to meet its short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a similar trend, with values ranging from 2.05 to 6.09. This suggests that Cal-Maine Foods Inc has a solid ability to cover its short-term liabilities without relying on inventory sales.
The cash ratio, which focuses on the company's most liquid assets (cash and cash equivalents) compared to its current liabilities, has also varied, with values between 0.73 and 4.83. While the cash ratio has been lower compared to the current and quick ratios, it indicates that the company has sufficient cash reserves to cover its current liabilities in most periods.
Overall, the liquidity ratios of Cal-Maine Foods Inc demonstrate a generally healthy financial position, with the company maintaining solid liquidity levels across the periods analyzed.
Additional liquidity measure
| 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 conversion cycle | days | 58.91 | 68.18 | 59.55 | 67.15 | 55.38 | 94.97 | 113.38 | 110.91 | 99.47 | 115.02 | 118.89 | 120.37 | 103.22 | 95.50 | 90.74 | 80.05 | 67.46 | 94.32 | 97.98 | 82.26 |
The cash conversion cycle for Cal-Maine Foods Inc has shown fluctuations over the past several quarters, ranging from 55.38 days to 120.37 days. The cash conversion cycle measures the amount of time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
A lower cash conversion cycle is generally preferred as it indicates that the company is able to efficiently manage its working capital and generate cash from its operations. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing inventory, receivables, and payables, leading to longer cash conversion periods.
Cal-Maine Foods Inc's cash conversion cycle has been relatively volatile, with spikes observed in certain quarters such as February 25, 2023, and November 27, 2021. These spikes may indicate challenges in managing working capital efficiently during those periods.
Overall, it is important for Cal-Maine Foods Inc to closely monitor its cash conversion cycle and identify opportunities to streamline its operations, improve inventory turnover, and manage receivables and payables effectively in order to enhance its cash flow and overall financial performance.