Hormel Foods Corporation (HRL)
Quick ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 741,881 | 736,532 | 982,107 | 613,530 | 1,714,310 |
| Short-term investments | US$ in thousands | 24,742 | 16,664 | 16,149 | 21,162 | 17,338 |
| Receivables | US$ in thousands | 868,288 | 824,633 | 874,770 | 904,012 | 743,868 |
| Total current liabilities | US$ in thousands | 1,399,300 | 2,311,780 | 1,473,270 | 1,415,650 | 1,503,960 |
| Quick ratio | 1.17 | 0.68 | 1.27 | 1.09 | 1.65 |
October 27, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($741,881K
+ $24,742K
+ $868,288K)
÷ $1,399,300K
= 1.17
The quick ratio of Hormel Foods Corporation has shown fluctuating trends over the past five years. In fiscal year 2020, the quick ratio was 1.65, indicating a strong ability to meet its short-term obligations with liquid assets. However, in fiscal year 2021, the quick ratio decreased to 1.09, which may suggest a slight reduction in liquidity.
The quick ratio improved in fiscal year 2022 to 1.27, signaling an increase in the company's ability to cover its current liabilities with its most liquid assets. This improvement continued in fiscal year 2023, with the quick ratio rising to 0.68. This decline could indicate potential liquidity challenges or a decrease in liquid assets relative to current liabilities.
In the most recent fiscal year, 2024, Hormel Foods Corporation's quick ratio increased to 1.17, reflecting a better ability to meet short-term obligations with liquid assets compared to the previous year. Overall, while there have been fluctuations in the quick ratio over the years, the company has demonstrated a general capacity to cover its short-term liabilities with its liquid assets, albeit with some variability.