Hormel Foods Corporation (HRL)
Cash ratio
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Jul 25, 2021 | Apr 25, 2021 | Jan 24, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 741,881 | 537,476 | 1,486,370 | 963,212 | 736,532 | 669,124 | 580,496 | 599,789 | 982,107 | 850,344 | 861,719 | 824,434 | 613,530 | 291,363 | 1,484,530 | 1,751,540 | 1,714,310 | 1,729,370 | 606,073 | 724,419 |
| Short-term investments | US$ in thousands | 24,742 | 24,454 | 23,074 | 18,712 | 16,664 | 17,423 | 17,531 | 17,792 | 16,149 | 18,314 | 23,478 | 22,194 | 21,162 | 18,372 | 17,700 | 17,520 | 17,338 | 17,564 | 16,841 | 14,808 |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,309,750 | 2,304,810 | 2,260,780 | 2,311,780 | 2,320,620 | 1,305,220 | 1,373,380 | 1,473,270 | 1,419,900 | 1,480,660 | 1,415,330 | 1,415,650 | 1,251,190 | 1,175,180 | 1,417,470 | 1,503,960 | 1,427,050 | 1,324,600 | 1,023,080 |
| Cash ratio | 0.55 | 0.43 | 0.65 | 0.43 | 0.33 | 0.30 | 0.46 | 0.45 | 0.68 | 0.61 | 0.60 | 0.60 | 0.45 | 0.25 | 1.28 | 1.25 | 1.15 | 1.22 | 0.47 | 0.72 |
October 27, 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 past few years, indicating the company's ability to cover its short-term liabilities with cash and cash equivalents. The ratio has ranged from 0.25 to 1.28, reflecting variations in the company's cash position relative to its current liabilities.
In analyzing the trend, we observe that the cash ratio was relatively stable around 0.45 to 0.65 from January 2020 to April 2023. However, there was a significant spike in the cash ratio in the latest two quarters, reaching 1.28 in April 2021 and 1.25 in July 2021, suggesting a substantial increase in the company's available cash to cover its short-term obligations.
The high cash ratio in the recent quarters could indicate improved liquidity and a strong cash position for Hormel Foods Corporation. A cash ratio above 1.0 implies that the company can meet all its current liabilities solely with its cash holdings, which is a positive indicator of financial health and solvency.
Overall, the fluctuating cash ratio of Hormel Foods Corporation indicates varying levels of liquidity and the company's ability to manage its short-term financial obligations effectively.