Hormel Foods Corporation (HRL)

Quick 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
Cash US$ in thousands 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 1,729,370 606,073 724,419 672,901 560,199 639,327
Short-term investments US$ in thousands 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 14,736 14,064 6,675
Receivables US$ in thousands 751,048 824,633 793,744 769,128 794,358 874,770 810,583 — 820,405 904,012 912,416 731,448 715,651 743,868 649,563 536,351 562,670 594,320 529,250 537,740
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
Quick ratio 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 1.16 1.03 1.13

January 28, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($963,212K + $18,712K + $751,048K) ÷ $2,260,780K
= 0.77

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.

Hormel Foods Corp.'s quick ratio has fluctuated over the past eight quarters, ranging from 0.65 to 1.30. In Q1 2024, the quick ratio was 0.79, indicating that the company may have had some difficulty meeting its short-term obligations with its readily available assets. However, in the previous quarter (Q4 2023), the ratio was slightly lower at 0.70.

The trend suggests that Hormel Foods Corp.'s liquidity position has weakened in recent quarters. It's important for investors and analysts to monitor the quick ratio over time to assess the company's ability to manage its short-term financial obligations effectively and sustain operations.