Hormel Foods Corporation (HRL)
Cash ratio
| 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 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 672,901 | 560,199 | 639,327 |
| Short-term investments | US$ in thousands | 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 | 14,736 | 14,064 | 6,675 |
| Total current liabilities | US$ in thousands | 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 | 1,105,050 | 1,073,090 | 1,051,680 |
| Cash ratio | 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 | 0.62 | 0.54 | 0.61 |
January 28, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($963,212K
+ $18,712K)
÷ $2,260,780K
= 0.43
The cash ratio for Hormel Foods Corp. has fluctuated over the past eight quarters. In Q1 2024, the cash ratio stood at 0.46, indicating that the company has $0.46 in cash and cash equivalents for every $1 of current liabilities. This ratio has increased compared to the previous quarter (Q4 2023) when it was 0.34.
The trend in the cash ratio shows some volatility with fluctuations observed in Q2 and Q3 of 2023, where the cash ratio was relatively high at 0.50 and 0.31, respectively. In Q1 2023 and Q4 2022, the cash ratio was 0.49 and 0.71, respectively, reflecting varying levels of liquidity available to meet short-term obligations.
Overall, the cash ratio of Hormel Foods Corp. has shown variability over the past eight quarters, indicating changes in the company's ability to cover its short-term liabilities with cash on hand. Further analysis and comparison with industry benchmarks would be beneficial to gain a more comprehensive understanding of the company's liquidity position.