Avnet Inc (AVT)

Cash ratio

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Cash and cash equivalents US$ in thousands 310,941 288,230 153,693 199,691 477,038
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 4,465,270 4,249,380 4,251,650 3,055,240 2,280,370
Cash ratio 0.07 0.07 0.04 0.07 0.21

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($310,941K + $—K) ÷ $4,465,270K
= 0.07

The cash ratio of Avnet Inc over the past five years shows fluctuations in the company's ability to cover its short-term liabilities with cash and cash equivalents. The cash ratio stood at 0.07 in both 2024 and 2023, indicating that for every dollar of current liabilities, the company had $0.07 in cash available. This suggests a consistent liquidity position over the past two years.

In 2022, the cash ratio decreased to 0.04, implying a lower ability to cover short-term obligations with cash reserves. The drop in the cash ratio from the previous year may indicate a decrease in the company's liquidity position or a rise in short-term liabilities during that period.

The cash ratio rebounded to 0.07 in 2021, matching the levels seen in 2024 and 2023. This improvement suggests a return to a similar liquidity position to the one observed in previous years.

In 2020, the cash ratio was notably higher at 0.21, indicating a stronger ability to meet short-term obligations with available cash reserves. This could imply a prudent cash management strategy or higher cash reserves relative to short-term liabilities that year.

Overall, the varying cash ratio figures reflect fluctuations in Avnet Inc's liquidity position over the past five years, with higher ratios indicating better liquidity and lower ratios indicating potential liquidity challenges or shifts in the company's cash management practices.


Peer comparison

Jun 30, 2024

Company name
Symbol
Cash ratio
Avnet Inc
AVT
0.07
Arrow Electronics Inc
ARW
0.02
TE Connectivity Ltd
TEL
0.28