Concentrix Corporation (CNXC)

Cash ratio

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021
Cash and cash equivalents	US$ in thousands	234,794	295,336	2,112,790	152,896	178,386	145,382	176,082	163,364	142,157	182,038	154,193	131,249	117,576
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,782,770	2,074,040	1,045,570	1,007,480	993,966	1,132,120	1,028,210	1,023,020	1,036,280	968,214	888,792	889,613	877,576
Cash ratio		0.13	0.14	2.02	0.15	0.18	0.13	0.17	0.16	0.14	0.19	0.17	0.15	0.13

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($234,794K + $—K) ÷ $1,782,770K
= 0.13

The cash ratio of Concentrix Corporation has fluctuated over the past several quarters, ranging from a low of 0.13 to a high of 2.02. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

The sudden spike in the cash ratio to 2.02 in August 2023 is noteworthy and signifies a significant increase in the company's cash reserves relative to its short-term liabilities. This could be due to various factors such as increased cash inflows, reduced short-term obligations, or a combination of both.

Despite the fluctuations, the cash ratio generally remained within a reasonable range between 0.13 and 0.19 in most periods, indicating that Concentrix Corporation has maintained a prudent level of liquidity to cover its short-term financial commitments.

Overall, the trend in the cash ratio suggests that Concentrix Corporation has managed its cash resources effectively, ensuring that it has sufficient liquidity to meet its short-term obligations while also potentially maintaining some reserves for future investment or operational needs.