Cirrus Logic Inc (CRUS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.93 | 6.64 | 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 | 4.23 | 4.10 | 4.01 | 3.38 | 4.30 |
| Quick ratio | 3.70 | 4.11 | 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 | 2.77 | 2.95 | 2.98 | 2.40 | 2.76 |
| 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 |
Cirrus Logic Inc has shown a consistently strong current ratio over the past five quarters, with the ratio ranging from 4.70 to 6.64. This demonstrates that the company has more than enough current assets to cover its current liabilities, indicating a healthy liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has ranged from 2.83 to 4.11 over the same period. These figures suggest that the company is able to meet its short-term obligations without relying on selling inventory, showing a robust liquidity position.
The cash ratio, which reflects the most conservative estimate of liquidity by considering only cash and cash equivalents to cover current liabilities, has been relatively stable, ranging from 1.34 to 2.89. This indicates that Cirrus Logic Inc has a sufficient level of cash on hand to meet its short-term obligations without having to rely on other current assets.
Overall, Cirrus Logic Inc's liquidity ratios suggest that the company is in a strong financial position with ample liquidity to support its operations and meet its short-term financial obligations.
Additional liquidity measure
| 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 conversion cycle | days | 92.99 | 107.61 | 133.15 | 106.54 | 74.33 | 59.97 | 71.38 | 57.37 | 57.34 | 89.96 | -12.01 | 77.80 | 60.61 | 96.51 | 124.09 | 103.85 | 86.70 | 70.73 | 84.22 | 77.04 |
The cash conversion cycle of Cirrus Logic Inc has shown fluctuating trends over the past quarters. The company's cash conversion cycle indicates the number of days it takes to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter ended March 31, 2024, the cash conversion cycle was 92.99 days, reflecting a decrease from the previous quarter. This suggests that the company has been able to manage its operating cycle more efficiently, resulting in quicker cash generation from its operating activities.
Looking back at the trend over the last few quarters, the cash conversion cycle has experienced some volatility, with peaks and troughs observed intermittently. Notably, there was a significant improvement in the cash conversion cycle in the third quarter of 2021, where the cycle was negative, indicating that the company was able to convert its investments into cash rapidly during that period.
Overall, assessing Cirrus Logic Inc's cash conversion cycle over time provides insights into the company's working capital management efficiency and its ability to generate cash flows from its operations. It is essential for investors and stakeholders to continue monitoring this metric to understand the company's operational efficiency and financial health.