FormFactor Inc (FORM)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 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
Cash and cash equivalents	US$ in thousands	190,728	184,506	201,853	192,161	178,964	108,731	97,981	112,360	106,126	121,865	138,497	167,182	151,010	153,781	160,273	173,616	187,225	185,368	199,926	169,607
Short-term investments	US$ in thousands	169,295	169,961	161,710	162,863	150,507	135,693	138,943	123,891	132,005	130,991	129,919	129,174	125,055	110,898	95,962	94,093	67,810	56,100	61,177	69,759
Total current liabilities	US$ in thousands	131,345	129,176	139,041	130,558	131,095	129,526	124,103	128,170	149,667	163,756	159,585	154,657	148,754	160,000	153,851	146,649	154,571	136,274	123,236	117,494
Cash ratio		2.74	2.74	2.61	2.72	2.51	1.89	1.91	1.84	1.59	1.54	1.68	1.92	1.86	1.65	1.67	1.83	1.65	1.77	2.12	2.04

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($190,728K + $169,295K) ÷ $131,345K
= 2.74

The cash ratio of FormFactor Inc has shown a generally positive trend over the provided period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, indicating its liquidity position.

Initially starting at 2.04 on March 31, 2020, the cash ratio increased gradually, peaking at 2.74 on December 31, 2024. This indicates that FormFactor Inc had sufficient cash and cash equivalents to cover 2.74 times of its short-term liabilities by the end of 2024.

However, it is important to note some fluctuations in the cash ratio throughout the period, with some decreases in between the overall upward trend. For example, the ratio decreased from 2.12 on June 30, 2020, to 1.77 on September 30, 2020, before recovering and reaching new highs.

These fluctuations could be attributed to various factors such as changes in operations, investments, or financing activities. Overall, the increasing trend in the cash ratio indicates an improving liquidity position for FormFactor Inc, which may suggest better financial stability and ability to meet its short-term obligations effectively.