Cohu Inc (COHU)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 245,524 | 242,341 | 290,201 | 149,358 | 155,194 |
| Short-term investments | US$ in thousands | 90,174 | 143,235 | 89,704 | 20,669 | 904 |
| Total current liabilities | US$ in thousands | 103,421 | 160,872 | 192,459 | 174,453 | 148,885 |
| Cash ratio | 3.25 | 2.40 | 1.97 | 0.97 | 1.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($245,524K
+ $90,174K)
÷ $103,421K
= 3.25
The cash ratio of Cohu Inc has shown a significant upward trend over the past five years, indicating an improvement in the company's liquidity position. The ratio has increased steadily from 1.05 in 2019 to 3.25 in 2023, displaying a strong ability to cover its short-term obligations with cash and cash equivalents.
A cash ratio of 3.25 in 2023 means that Cohu Inc had $3.25 of cash and cash equivalents for every $1 of current liabilities at the end of the year, highlighting a robust liquidity position. This indicates the company's ability to easily meet its short-term financial obligations without having to rely on external financing or sell off assets.
The rising cash ratio over the years suggests that Cohu Inc has been effectively managing its cash resources and maintaining a healthy balance between liquidity and investments. The trend reflects positively on the company's financial health and its ability to weather economic uncertainties or unexpected cash flow challenges.
Overall, the increasing cash ratio of Cohu Inc signifies a strengthening liquidity position, providing a solid foundation for the company's financial stability and operational flexibility.
Peer comparison
Dec 31, 2023