Cirrus Logic Inc (CRUS)

Cash ratio

		Mar 31, 2024	Dec 31, 2023	Sep 23, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	502,764	483,931	277,805	352,346	445,784	434,544	355,043	379,335	369,814	195,121	386,741	385,127	442,164	327,294	247,536	285,922	292,119	342,301	221,937	198,077
Short-term investments	US$ in thousands	23,778	32,842	34,636	35,765	34,978	28,373	23,869	18,397	10,601	3,719	8,152	60,503	55,697	43,289	36,641	29,943	22,008	13,098	22,563	52,350
Total current liabilities	US$ in thousands	186,393	178,594	201,190	202,854	216,340	228,549	282,365	252,596	264,783	239,514	500,381	186,501	213,610	184,855	178,043	163,044	158,637	178,311	192,796	131,206
Cash ratio		2.82	2.89	1.55	1.91	2.22	2.03	1.34	1.57	1.44	0.83	0.79	2.39	2.33	2.00	1.60	1.94	1.98	1.99	1.27	1.91

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 some fluctuations over the past several quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In the most recent quarter ending on March 31, 2024, the cash ratio stood at 2.82, indicating that the company had $2.82 in cash and cash equivalents for every $1 of its current liabilities. This represents a slight decrease from the previous quarter's ratio of 2.89.

Looking back over the past few quarters, the company's cash ratio has generally been above 1, indicating a healthy level of liquidity. However, there have been fluctuations in the ratio, with some quarters showing higher levels of liquidity (such as the ratios of 2.22 and 2.03 in Q1 and Q4 of 2023, respectively) and others showing lower levels (like the ratios of 0.79 and 0.83 in Q3 and Q4 of 2021, respectively).

Overall, the upward trend in the cash ratio in recent quarters suggests that Cirrus Logic Inc has been improving its ability to cover its short-term obligations with its cash reserves. However, it is essential to monitor this ratio along with other financial metrics to assess the overall financial health of the company.