Hormel Foods Corporation (HRL)
Quick ratio
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 840,398 | 741,881 | 741,881 | 537,476 | 537,476 | 1,486,370 | 1,486,370 | 963,212 | 963,212 | 736,532 | 736,532 | 669,124 | 669,124 | 580,496 | 599,789 | 599,789 | 982,107 | 982,107 | 850,344 | 861,719 |
| Short-term investments | US$ in thousands | 26,016 | 24,742 | 24,742 | 24,454 | 24,454 | 23,074 | 23,074 | 18,712 | 18,712 | 16,664 | 16,664 | 17,423 | 17,423 | 17,531 | 17,792 | 17,792 | 16,149 | 16,149 | 18,314 | 23,478 |
| Receivables | US$ in thousands | — | — | 868,288 | — | 727,054 | — | 731,984 | — | 751,048 | — | 824,633 | — | 793,744 | — | — | 794,358 | — | 874,770 | — | — |
| Total current liabilities | US$ in thousands | 1,331,810 | 1,399,300 | 1,399,300 | 1,309,750 | 1,309,750 | 2,304,810 | 2,304,810 | 2,260,780 | 2,260,780 | 2,311,780 | 2,311,780 | 2,320,620 | 2,320,620 | 1,305,220 | 1,373,380 | 1,373,380 | 1,473,270 | 1,473,270 | 1,419,900 | 1,480,660 |
| Quick ratio | 0.65 | 0.55 | 1.17 | 0.43 | 0.98 | 0.65 | 0.97 | 0.43 | 0.77 | 0.33 | 0.68 | 0.30 | 0.64 | 0.46 | 0.45 | 1.03 | 0.68 | 1.27 | 0.61 | 0.60 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($840,398K
+ $26,016K
+ $—K)
÷ $1,331,810K
= 0.65
The quick ratio of Hormel Foods Corporation has fluctuated over the reported periods, ranging from a low of 0.30 to a high of 1.27. A quick ratio below 1 indicates that the company may have difficulties meeting its short-term liabilities with its most liquid assets.
In the latest period, as of January 31, 2025, the quick ratio stands at 0.65. This suggests that the company had $0.65 in liquid assets to cover each dollar of its current liabilities. While an improvement from the earlier periods, it still indicates a potential risk in the company's ability to meet its short-term obligations comfortably.
It’s important to note that the quick ratio should be considered alongside other financial metrics and industry benchmarks to gain a comprehensive understanding of Hormel Foods Corporation's liquidity position.