Cal-Maine Foods Inc (CALM)

Quick ratio

May 31, 2025 Jun 1, 2024 May 31, 2024 Jun 3, 2023 May 31, 2023
Cash US$ in thousands 500,392 237,878 237,878 292,824 292,824
Short-term investments US$ in thousands 892,708 574,499 574,499 355,090 355,090
Receivables US$ in thousands 272,361 162,442 162,442 187,213 187,213
Total current liabilities US$ in thousands 308,371 227,743 227,743 182,731 182,731
Quick ratio 5.40 4.28 4.28 4.57 4.57

May 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($500,392K + $892,708K + $272,361K) ÷ $308,371K
= 5.40

The quick ratio of Cal-Maine Foods Inc. demonstrates notable fluctuations over the observed periods, reflecting changes in the company's short-term liquidity position. As of May 31, 2023, and June 3, 2023, the quick ratio stood at 4.57, indicating that the company's liquid assets were more than four times its current liabilities, suggesting a strong liquidity cushion at that time. Moving forward to May 31, 2024, and June 1, 2024, the quick ratio slightly decreased to 4.28, which still signifies a robust liquidity position but indicates a modest reduction in immediate liquidity relative to the previous year. By May 31, 2025, the quick ratio increased significantly to 5.40, highlighting an improved liquidity stance with the company possessing over five times its current liabilities in liquid assets. Overall, the trend reflects a consistently high level of short-term liquidity, with a notable enhancement observed at the end of the forecast period, suggesting enhanced ability to meet immediate obligations without reliance on inventory sales or other less liquid assets.