Hormel Foods Corporation (HRL)
Current ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,246,480 | 3,246,480 | 3,297,250 | 3,297,250 | 3,637,120 |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,399,300 | 2,311,780 | 2,311,780 | 1,473,270 |
| Current ratio | 2.32 | 2.32 | 1.43 | 1.43 | 2.47 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,246,480K ÷ $1,399,300K
= 2.32
The current ratio for Hormel Foods Corporation has shown fluctuating trends over the past few years. As of October 31, 2022, the current ratio stood at 2.47, indicating a strong ability to cover its short-term liabilities with current assets. However, by October 29, 2023, and October 31, 2023, the current ratio decreased to 1.43, suggesting a potential decrease in liquidity and a tighter ability to meet short-term obligations.
Subsequently, the current ratio improved to 2.32 as of October 27, 2024, and remained stable at the same level on October 31, 2024. This increase signifies a better position in terms of liquidity and a stronger capacity to fulfill immediate financial commitments with current assets.
Overall, the current ratio of Hormel Foods Corporation has displayed variability, highlighting the importance of continuous monitoring of liquidity levels and management of current assets to ensure financial stability and solvency.