Hormel Foods Corporation (HRL)
Cash ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 741,881 | 741,881 | 736,532 | 736,532 | 982,107 |
| Short-term investments | US$ in thousands | 24,742 | 24,742 | 16,664 | 16,664 | 16,149 |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,399,300 | 2,311,780 | 2,311,780 | 1,473,270 |
| Cash ratio | 0.55 | 0.55 | 0.33 | 0.33 | 0.68 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($741,881K
+ $24,742K)
÷ $1,399,300K
= 0.55
The cash ratio of Hormel Foods Corporation has fluctuated over the years based on the provided data. As of October 31, 2022, the cash ratio stood at 0.68, indicating that the company had $0.68 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the cash ratio dropped to 0.33 by October 29, 2023, and remained at the same level by October 31, 2023.
However, there was an improvement in the cash ratio by October 27, 2024, where it increased to 0.55 and maintained the same level by October 31, 2024. This indicates that the company had $0.55 in cash and cash equivalents for every $1 of current liabilities during that period.
Overall, the cash ratio of Hormel Foods Corporation shows variability in its ability to cover short-term obligations with its available cash and cash equivalents over the years, which could be further analyzed to understand the company's liquidity position.