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.