Hormel Foods Corporation (HRL)
Current ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,246,480 | 3,297,250 | 3,637,120 | 2,947,820 | 3,579,060 |
| Total current liabilities | US$ in thousands | 1,399,300 | 2,311,780 | 1,473,270 | 1,415,650 | 1,503,960 |
| Current ratio | 2.32 | 1.43 | 2.47 | 2.08 | 2.38 |
October 27, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,246,480K ÷ $1,399,300K
= 2.32
The current ratio of Hormel Foods Corporation has fluctuated over the past five years, as indicated by the data provided. As of October 27, 2024, the current ratio stood at 2.32, showcasing an improvement compared to the previous year where it was 1.43 on October 29, 2023. The current ratio indicates the company's ability to meet its short-term obligations with its current assets, with a higher ratio suggesting a stronger financial position.
Although the current ratio fluctuated, Hormel Foods Corporation generally maintained a current ratio above 2 in the last five years, indicating a robust ability to cover its short-term liabilities with current assets. This implies that the company has sufficient current assets to pay off its current liabilities comfortably. It is also noteworthy that the current ratio was highest on October 30, 2022, at 2.47, indicating a peak in liquidity during that period.
Overall, the trend in Hormel Foods Corporation's current ratio suggests a generally healthy liquidity position over the years, with fluctuations that could be influenced by various factors such as changes in current assets and liabilities. Investors and analysts may view a current ratio above 2 as a positive sign of financial stability and liquidity for the company.