Azenta Inc (AZTA)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 310,929 | 678,910 | 658,274 | 227,427 | 250,649 |
| Short-term investments | US$ in thousands | 210,677 | 455,346 | 911,764 | 81 | 67 |
| Total current liabilities | US$ in thousands | 204,839 | 210,928 | 230,546 | 345,088 | 211,118 |
| Cash ratio | 2.55 | 5.38 | 6.81 | 0.66 | 1.19 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($310,929K
+ $210,677K)
÷ $204,839K
= 2.55
The cash ratio of Azenta Inc has shown fluctuating trends over the past five years. In Sep 30, 2024, the cash ratio stood at 2.55, indicating that the company had $2.55 in cash and cash equivalents for every $1 of current liabilities. This ratio has decreased significantly from the previous year, suggesting a potential decrease in the company's ability to cover its short-term obligations solely with cash.
In Sep 30, 2023, the cash ratio was significantly higher at 5.38, indicating a stronger liquidity position compared to 2024. The company had $5.38 in cash and cash equivalents for every $1 of current liabilities, reflecting a robust ability to meet short-term obligations without relying on other current assets.
Similarly, in Sep 30, 2022, the cash ratio was even higher at 6.81, demonstrating further improvement in liquidity compared to the previous year. This indicates that Azenta Inc had a higher proportion of cash reserves relative to its current liabilities, enhancing its ability to navigate potential financial challenges without external financing.
However, in Sep 30, 2021, the cash ratio dropped significantly to 0.66, signaling a substantial decline in liquidity compared to the previous years. This means that the company had only $0.66 in cash and cash equivalents for every $1 of current liabilities, suggesting a potential cash crunch or decreased ability to cover short-term obligations with available cash reserves.
Lastly, in Sep 30, 2020, the cash ratio was 1.19, indicating a moderate improvement in liquidity compared to 2021 but still lower than the levels seen in 2022 and 2023. This suggests that Azenta Inc had $1.19 in cash and cash equivalents for every $1 of current liabilities, indicating a relatively stable liquidity position in that year.
Overall, the fluctuating trends in Azenta Inc's cash ratio over the past five years reflect varying levels of liquidity and the company's ability to cover short-term obligations with cash reserves. It is essential for stakeholders to monitor these trends closely to assess the company's financial health and liquidity management.
Peer comparison
Sep 30, 2024