Cal-Maine Foods Inc (CALM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 500,392 | 497,239 | 140,296 | 181,667 | 237,878 | 237,878 | 367,123 | 367,123 | 361,783 | 361,783 | 360,343 | 360,343 | 292,824 | 292,824 | 221,614 | 221,614 | 178,635 | 178,635 | 136,021 | 136,021 |
| Short-term investments | US$ in thousands | 892,708 | 743,134 | 656,887 | 571,923 | 574,499 | 574,499 | 327,720 | 327,720 | 206,045 | 206,045 | 249,619 | 249,619 | 355,090 | 355,090 | 423,418 | 423,418 | 200,714 | 200,714 | 145,784 | 145,784 |
| Receivables | US$ in thousands | 272,361 | 428,398 | 317,751 | 282,551 | 162,442 | 162,442 | 246,622 | 246,622 | 199,162 | 199,162 | 159,150 | 159,150 | 187,213 | 187,213 | 249,867 | 249,867 | 305,111 | 305,111 | 220,364 | 220,364 |
| 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 |
| Quick ratio | 5.40 | 3.25 | 4.28 | 3.18 | 4.28 | 4.28 | 4.36 | 4.36 | 4.99 | 4.99 | 6.09 | 6.09 | 4.57 | 4.57 | 2.86 | 2.86 | 2.23 | 2.23 | 2.18 | 2.18 |
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 analysis of Cal-Maine Foods Inc's quick ratio over the specified period reveals a generally strong liquidity position, with notable fluctuations indicative of the company's ability to meet short-term obligations with its most liquid assets.
Initially, as of August 2022, the quick ratio stood at 2.18, implying that the company's liquid assets were more than twice its current liabilities. This level persisted into November 2022, maintaining a steady ratio of 2.23. Such ratios suggest a comfortable liquidity cushion during this period.
From late February 2023, the quick ratio increased significantly to 2.86, indicating a strengthening liquidity position and possibly improved cash management or a reduction in current liabilities relative to liquid assets. This upward trend became more pronounced by May 2023, where the ratio sharply rose to 4.57, and continued into August 2023, reaching a peak of 6.09. These elevated ratios suggest that the company's liquid assets substantially exceeded its short-term liabilities, reflecting a robust liquidity position at this time.
Subsequently, the quick ratio experienced a decline to 4.99 by late November 2023 but remained well above initial levels, indicating sustained liquidity strength. The ratio hovered around 4.36 to 4.28 through early 2024, pointing to a slight moderation but still maintaining comfortable liquidity levels.
A noticeable decrease occurred by August 2024, when the quick ratio dropped to 3.18, yet it remained above 3, suggesting that the company's liquidity remained adequate despite the reduction. Later, there was an increase again to 4.28 in November 2024, before declining slightly to 3.25 in February 2025. The ratio subsequently increased to 5.40 by May 2025, indicating an enhanced liquidity posture toward the end of this period.
Overall, the trend demonstrates that Cal-Maine Foods Inc maintained strong liquidity throughout the observed duration, with the quick ratio consistently exceeding 2. indicating solid short-term financial health. The fluctuations reflect periods of enhanced liquidity capacity coupled with minor contractions, yet the company generally retained ample liquid assets relative to its short-term liabilities.