Hormel Foods Corporation (HRL)
Cash ratio
Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 840,398 | 741,881 | 741,881 | 537,476 | 537,476 | 1,486,370 | 1,486,370 | 963,212 | 963,212 | 736,532 | 736,532 | 669,124 | 669,124 | 580,496 | 599,789 | 599,789 | 982,107 | 982,107 | 850,344 | 861,719 |
Short-term investments | US$ in thousands | 26,016 | 24,742 | 24,742 | 24,454 | 24,454 | 23,074 | 23,074 | 18,712 | 18,712 | 16,664 | 16,664 | 17,423 | 17,423 | 17,531 | 17,792 | 17,792 | 16,149 | 16,149 | 18,314 | 23,478 |
Total current liabilities | US$ in thousands | 1,331,810 | 1,399,300 | 1,399,300 | 1,309,750 | 1,309,750 | 2,304,810 | 2,304,810 | 2,260,780 | 2,260,780 | 2,311,780 | 2,311,780 | 2,320,620 | 2,320,620 | 1,305,220 | 1,373,380 | 1,373,380 | 1,473,270 | 1,473,270 | 1,419,900 | 1,480,660 |
Cash ratio | 0.65 | 0.55 | 0.55 | 0.43 | 0.43 | 0.65 | 0.65 | 0.43 | 0.43 | 0.33 | 0.33 | 0.30 | 0.30 | 0.46 | 0.45 | 0.45 | 0.68 | 0.68 | 0.61 | 0.60 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($840,398K
+ $26,016K)
÷ $1,331,810K
= 0.65
Hormel Foods Corporation's cash ratio has shown fluctuations over the past few years, ranging from a low of 0.30 to a high of 0.68. The cash ratio represents the company's ability to cover its short-term obligations with its cash and cash equivalents.
The trend in the cash ratio indicates that the company had a relatively strong liquidity position in the fiscal year 2023, with ratios above 0.45 for most of the year. However, there was a significant drop in the cash ratio in the third quarter of 2023, reaching a low of 0.30. This may suggest that the company faced challenges in meeting its short-term obligations with available cash during that period.
Subsequently, the cash ratio improved in the following quarters, reaching 0.65 in the second quarter of 2024. This indicates that the company was able to strengthen its liquidity position and increase its ability to cover short-term obligations with cash and cash equivalents.
Overall, while there have been fluctuations in the cash ratio, Hormel Foods Corporation has generally maintained a reasonable level of liquidity, with the ratio consistently above 0.30, which is considered a good indicator of short-term liquidity.