Cirrus Logic Inc (CRUS)
Liquidity ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.35 | 5.93 | 5.34 | 5.46 | 5.93 | 6.64 | 5.45 | 5.45 | 5.17 | 4.70 | 4.43 | 3.39 | 3.41 | 3.17 | 3.19 | 1.90 | 4.50 | 3.94 | 4.35 | 3.98 |
| Quick ratio | 4.16 | 3.92 | 3.50 | 3.51 | 3.70 | 4.11 | 2.90 | 2.90 | 2.83 | 2.92 | 3.21 | 2.42 | 2.39 | 2.34 | 2.19 | 1.35 | 3.12 | 2.84 | 3.33 | 2.62 |
| Cash ratio | 3.05 | 2.67 | 2.09 | 2.56 | 2.82 | 2.89 | 1.55 | 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 |
Cirrus Logic Inc's liquidity ratios indicate a generally healthy liquidity position over the periods analyzed.
The current ratio has been consistently above 1, indicating that the company has more than enough current assets to cover its current liabilities. The ratio has shown fluctuations over time, ranging from a low of 1.90 to a high of 6.64, with an average of around 4. This suggests that Cirrus Logic Inc has a strong ability to meet its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been consistently above 1. This ratio has shown a similar pattern of fluctuations, ranging from 1.35 to 4.16, with an average around 3. This indicates that the company has a solid ability to quickly meet its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most conservative liquidity measure, assesses the company's ability to cover current liabilities with its cash and cash equivalents alone. Cirrus Logic Inc has maintained a healthy cash ratio above 1 throughout the periods analyzed, ranging from 0.79 to 3.05, with an average around 2. This indicates that the company has a sufficient level of liquid assets to cover its short-term obligations without relying on selling other current assets.
Overall, based on the current ratio, quick ratio, and cash ratio trends, Cirrus Logic Inc appears to have maintained a solid liquidity position, with the ability to meet its short-term financial commitments effectively.
Additional liquidity measure
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 137.26 | 133.89 | 133.16 | 100.57 | 94.04 | 117.62 | 163.87 | 153.35 | 127.81 | 87.92 | 61.97 | 74.24 | 60.86 | 59.02 | 93.20 | -29.49 | 87.51 | 67.87 | 95.09 | 121.00 |
The cash conversion cycle of Cirrus Logic Inc has shown fluctuations over the specified period. It indicates the time taken by the company to convert its investments in inventory and other resources into cash flows from sales.
From September 30, 2020, to June 30, 2021, the company experienced a decreasing trend in the cash conversion cycle, indicating improved efficiency in managing its working capital. However, from September 30, 2021, to September 30, 2022, there was an increase in the cash conversion cycle, suggesting potential challenges in maintaining liquidity.
Subsequently, from December 31, 2022, to March 31, 2024, the company managed to optimize its cash conversion cycle, reflecting effective management of inventory and collection of receivables. However, from June 30, 2024, the cycle increased significantly, reaching a peak on December 31, 2024, and March 31, 2025, possibly due to delays in converting assets to cash or challenges in collecting payments.
Overall, the analysis of Cirrus Logic Inc's cash conversion cycle highlights the importance of efficient working capital management in ensuring the company's financial health and operational effectiveness. It is crucial for the company to continually monitor and improve its cash conversion cycle to maintain liquidity and optimize its cash flows.