Hormel Foods Corporation (HRL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 2,361,410 | 2,245,970 | 2,250,670 |
| 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 |
| Current ratio | 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 | 2.14 | 2.09 | 2.14 |
January 28, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,367,160K ÷ $2,260,780K
= 1.49
The current ratio of Hormel Foods Corp. has exhibited fluctuations over the past several quarters. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
In Q1 2024, the current ratio is at 1.49, indicating that the company has $1.49 in current assets for every $1 in current liabilities. This represents a slight improvement from the previous quarter's ratio of 1.43 in Q4 2023.
Looking further back, in Q3 and Q2 2023, the current ratio was 1.40 and 2.42, respectively. The significant decrease in Q3 could indicate potential liquidity issues, but the ratio rebounded strongly in Q2, suggesting a temporary blip or strategic management of working capital.
Comparing the current ratio for Q1 and Q4 2023 to the same periods in the prior year, there has been a slight decrease in liquidity from 2.33 in Q1 2023 to 2.47 in Q4 2022. However, the current ratio remains relatively stable within the range of 2.28 to 2.47.
Overall, while the company has shown some fluctuations in liquidity over the analyzed period, the current ratio has generally remained above 1, indicating that Hormel Foods Corp. has been able to meet its short-term obligations comfortably. However, it would be important to continue monitoring the trend to ensure ongoing financial stability and liquidity management.