Hormel Foods Corporation (HRL)

Quick 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
Cash US$ in thousands 741,881 537,476 1,486,370 963,212 736,532 669,124 580,496 599,789 982,107 850,344 861,719 824,434 613,530 291,363 1,484,530 1,751,540 1,714,310 1,729,370 606,073 724,419
Short-term investments US$ in thousands 24,742 24,454 23,074 18,712 16,664 17,423 17,531 17,792 16,149 18,314 23,478 22,194 21,162 18,372 17,700 17,520 17,338 17,564 16,841 14,808
Receivables US$ in thousands 868,288 727,054 731,984 751,048 824,633 793,744 769,128 794,358 874,770 810,583 — 820,405 904,012 912,416 731,448 715,651 743,868 649,563 536,351 562,670
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
Quick ratio 1.17 0.98 0.97 0.77 0.68 0.64 1.05 1.03 1.27 1.18 0.60 1.18 1.09 0.98 1.90 1.75 1.65 1.68 0.88 1.27

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 fluctuated over the past few years. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Based on the data provided, the quick ratio ranged from a low of 0.60 in May 2022 to a high of 1.90 in April 2021. The quick ratio improved significantly in April 2021, indicating a strong ability to meet short-term obligations. However, it decreased to 0.68 in October 2023, possibly indicating a temporary liquidity concern.

Overall, the quick ratio has shown some volatility but generally stayed above 1 in recent years, suggesting that Hormel Foods Corporation has maintained a solid liquidity position to meet its short-term financial obligations. Investors and analysts may want to monitor the trend in the quick ratio to ensure the company's continued ability to manage its short-term liquidity effectively.