Hormel Foods Corporation (HRL)
Quick ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 741,881 | 741,881 | 736,532 | 736,532 | 982,107 |
| Short-term investments | US$ in thousands | 24,742 | 24,742 | 16,664 | 16,664 | 16,149 |
| Receivables | US$ in thousands | — | 868,288 | — | 824,633 | — |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,399,300 | 2,311,780 | 2,311,780 | 1,473,270 |
| Quick ratio | 0.55 | 1.17 | 0.33 | 0.68 | 0.68 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($741,881K
+ $24,742K
+ $—K)
÷ $1,399,300K
= 0.55
Based on the quick ratio data provided for Hormel Foods Corporation, the quick ratio fluctuated over the years. In October 2022 and October 2023, the quick ratio remained stable at 0.68, indicating that the company had $0.68 in liquid assets available to cover each $1 of current liabilities.
However, in October 2023, there was a significant decrease in the quick ratio to 0.33, signaling potential liquidity challenges as the company only had $0.33 in quick assets for every $1 of current liabilities.
The quick ratio improved notably in October 2024, reaching 1.17, which indicates a healthier liquidity position with more than enough liquid assets to cover current liabilities. However, this improvement was temporary as the quick ratio declined to 0.55 by the end of October 2024.
Overall, the fluctuation in the quick ratio suggests varying levels of liquidity and the need for careful monitoring of the company's ability to meet its short-term obligations with its liquid assets.