Cirrus Logic Inc (CRUS)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	539,620	502,764	445,784	369,814	442,164
Short-term investments	US$ in thousands	56,160	23,778	34,978	10,601	55,697
Total current liabilities	US$ in thousands	195,188	186,393	216,340	264,783	213,610
Cash ratio		3.05	2.82	2.22	1.44	2.33

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($539,620K + $56,160K) ÷ $195,188K
= 3.05

The cash ratio of Cirrus Logic Inc has shown a fluctuating trend over the past five years. As of March 31, 2021, the cash ratio stood at 2.33, indicating that the company had $2.33 in cash and cash equivalents for every dollar of current liabilities.

However, by March 31, 2022, the cash ratio had decreased to 1.44, suggesting a decrease in the company's liquidity position. This could potentially raise concerns about the company's ability to meet its short-term obligations solely with its available cash resources.

In the following years, Cirrus Logic Inc managed to improve its cash ratio significantly. By March 31, 2025, the cash ratio had increased to 3.05, indicating a healthier liquidity position compared to the previous years. This improvement suggests that the company might have increased its cash reserves or decreased its current liabilities, strengthening its ability to meet short-term obligations.

Overall, while there were fluctuations in the cash ratio over the years, the upward trend in recent years indicates an enhancement in Cirrus Logic Inc's liquidity position, reflecting a potentially more secure financial standing concerning short-term obligations.