Hormel Foods Corporation (HRL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,246,480 | 2,997,450 | 3,976,520 | 3,367,160 | 3,297,250 | 3,254,770 | 3,162,600 | 3,195,310 | 3,637,120 | 3,403,480 | 3,373,560 | 3,093,350 | 2,947,820 | 2,688,670 | 3,514,290 | 3,601,660 | 3,579,060 | 3,409,770 | 2,248,900 | 2,394,970 |
| 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 |
| Current ratio | 2.32 | 2.29 | 1.73 | 1.49 | 1.43 | 1.40 | 2.42 | 2.33 | 2.47 | 2.40 | 2.28 | 2.19 | 2.08 | 2.15 | 2.99 | 2.54 | 2.38 | 2.39 | 1.70 | 2.34 |
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 20 reported periods. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally viewed as favorable, indicating a stronger liquidity position.
From the data provided, we observe that the current ratio has ranged from a low of 1.40 to a high of 2.99. This indicates some level of volatility in the company's liquidity position over the periods analyzed. In more recent periods, particularly in Oct 27, 2024 (2.32) and Jul 28, 2024 (2.29), the current ratio was above 2.00, suggesting a healthy liquidity position and the company's ability to meet its short-term obligations.
In contrast, there are instances, such as in Jan 24, 2021 (2.54) and Oct 30, 2022 (2.47), where the current ratio exceeded 2.50, reflecting even stronger liquidity. However, there are also periods, like Jan 28, 2024 (1.49) and Oct 25, 2020 (1.70), where the current ratio fell below 2.00, indicating potential liquidity challenges.
Overall, Hormel Foods Corporation seems to have maintained a relatively solid liquidity position based on the current ratio analysis, with occasional fluctuations observed. It is crucial for investors and creditors to continue monitoring this ratio to assess the company's ability to manage its short-term obligations effectively.