The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Hormel Foods's Cash Ratio for the quarter that ended in Jan. 2024 was 0.43.
Hormel Foods has a Cash Ratio of 0.43. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Hormel Foods's Cash Ratio or its related term are showing as below:
HRL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.23 Med: 0.47 Max: 1.28
Current: 0.43
During the past 13 years, Hormel Foods's highest Cash Ratio was 1.28. The lowest was 0.23. And the median was 0.47.
HRL's Cash Ratio is ranked better than 52.7% of 1835
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs HRL: 0.43
Hormel Foods Cash Ratio Historical Data
The historical data trend for Hormel Foods's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Hormel Foods Annual Data
Trend
Oct14
Oct15
Oct16
Oct17
Oct18
Oct19
Oct20
Oct21
Oct22
Oct23
Cash Ratio
0.62
1.15
0.45
0.68
0.33
Hormel Foods Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Cash Ratio
0.45
0.46
0.30
0.33
0.43
Competitive Comparison
For the Packaged Foods subindustry, Hormel Foods's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hormel Foods Cash Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hormel Foods's Cash Ratio falls into.
Hormel Foods Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Hormel Foods's Cash Ratio for the fiscal year that ended in Oct. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hormel Foods (NYSE:HRL) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Hormel Foods Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hormel Foods's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and become a branded food company. The firm sells its wares through multiple channels, including U.S. retail (64% of fiscal 2023 sales), U.S. food service (30%), and international (6%). By product, 53% of fiscal 2022 sales were from perishable food, 27% from shelf-stable, 17% from poultry, and 3% from other products. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HRL has been successfully added to your 