Cal-Maine Foods Inc (CALM)
Quick ratio
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 237,878 | 292,824 | 59,084 | 57,352 | 78,130 |
| Short-term investments | US$ in thousands | 574,499 | 355,090 | 115,429 | 112,158 | 154,163 |
| Receivables | US$ in thousands | 162,442 | 187,213 | 219,404 | 126,639 | 98,375 |
| Total current liabilities | US$ in thousands | 227,743 | 182,731 | 184,674 | 90,097 | 93,183 |
| Quick ratio | 4.28 | 4.57 | 2.13 | 3.29 | 3.55 |
June 1, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($237,878K
+ $574,499K
+ $162,442K)
÷ $227,743K
= 4.28
The quick ratio of Cal-Maine Foods Inc has shown fluctuation over the past five years. The ratio was highest on June 3, 2023, at 4.57 and lowest on May 28, 2022, at 2.13. A higher quick ratio suggests that the company has an increased ability to meet its short-term obligations using its most liquid assets. The company's quick ratio has generally been healthy and above 1, indicating a strong liquidity position. However, the significant decrease in the quick ratio from 4.57 in 2023 to 2.13 in 2022 raises some concerns about the company's ability to cover its short-term liabilities with its current liquid assets. It would be important to further investigate the factors that led to this decline and monitor the trend in subsequent periods to assess the company's liquidity position accurately.