Cirrus Logic Inc (CRUS)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	502,764	445,784	369,814	442,164	292,119
Short-term investments	US$ in thousands	23,778	34,978	10,601	55,697	22,008
Total current liabilities	US$ in thousands	186,393	216,340	264,783	213,610	158,637
Cash ratio		2.82	2.22	1.44	2.33	1.98

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($502,764K + $23,778K) ÷ $186,393K
= 2.82

The cash ratio of Cirrus Logic Inc has shown a general increasing trend over the past five years, indicating an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents.

As of March 31, 2024, the cash ratio stands at 2.82, which means that for every $1 of current liabilities, the company has $2.82 in cash and cash equivalents available. This indicates a strong liquidity position and suggests that Cirrus Logic Inc is well-positioned to meet its short-term obligations without relying heavily on external financing.

Comparing this to the previous years, we see a positive trajectory in the cash ratio from 2020 to 2024. Specifically, significant increases were observed in 2021 and 2024, indicating periods of enhanced liquidity management within the company.

Overall, the increasing trend in the cash ratio reflects an improving liquidity position for Cirrus Logic Inc, which can be a favorable signal for investors, creditors, and other stakeholders concerned with the company's short-term financial health.