Hormel Foods Corporation (HRL)
Current ratio
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,266,070 | 3,246,480 | 3,246,480 | 2,997,450 | 2,997,450 | 3,976,520 | 3,976,520 | 3,367,160 | 3,367,160 | 3,297,250 | 3,297,250 | 3,254,770 | 3,254,770 | 3,162,600 | 3,195,310 | 3,195,310 | 3,637,120 | 3,637,120 | 3,403,480 | 3,373,560 |
| Total current liabilities | US$ in thousands | 1,331,810 | 1,399,300 | 1,399,300 | 1,309,750 | 1,309,750 | 2,304,810 | 2,304,810 | 2,260,780 | 2,260,780 | 2,311,780 | 2,311,780 | 2,320,620 | 2,320,620 | 1,305,220 | 1,373,380 | 1,373,380 | 1,473,270 | 1,473,270 | 1,419,900 | 1,480,660 |
| Current ratio | 2.45 | 2.32 | 2.32 | 2.29 | 2.29 | 1.73 | 1.73 | 1.49 | 1.49 | 1.43 | 1.43 | 1.40 | 1.40 | 2.42 | 2.33 | 2.33 | 2.47 | 2.47 | 2.40 | 2.28 |
January 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,266,070K ÷ $1,331,810K
= 2.45
Hormel Foods Corporation's current ratio has displayed fluctuations over the specified periods, ranging from a low of 1.40 to a high of 2.47. The current ratio is a measure of the company's short-term liquidity, indicating its ability to meet its short-term obligations with its current assets.
The company's current ratio hovered around the range of 2.30 for most of the periods, suggesting a healthy ability to cover its current liabilities with current assets. However, in the third quarter of the fiscal year 2023, there was a notable drop in the current ratio to 1.40, which may raise concerns about the company's short-term liquidity position during that period.
Hormel Foods Corporation improved its current ratio in the subsequent periods, reaching 2.45 by the end of January 2025. This increase indicates a strengthening of the company's ability to cover its short-term obligations. Overall, the trend in the current ratio demonstrates a generally stable liquidity position for Hormel Foods Corporation, with periodic fluctuations that may require further investigation into the company's working capital management and financial health.