FormFactor Inc (FORM)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	177,812	108,731	97,981	112,360	109,130	120,602	136,395	167,182	151,010	153,781	160,273	173,616	187,225	185,368	199,926	169,607	144,545	122,946	124,810	105,759
Short-term investments	US$ in thousands	150,507	135,693	138,943	123,891	129,006	130,991	129,919	129,174	125,055	110,898	95,962	94,093	67,810	56,100	61,177	69,759	76,327	77,025	52,071	54,086
Total current liabilities	US$ in thousands	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	136,560	141,907	102,810	100,643
Cash ratio		2.50	1.89	1.91	1.84	1.59	1.54	1.67	1.92	1.86	1.65	1.67	1.83	1.65	1.77	2.12	2.04	1.62	1.41	1.72	1.59

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($177,812K + $150,507K) ÷ $131,095K
= 2.50

The cash ratio for FormFactor Inc has fluctuated over the past few years, ranging from 1.41 to 2.50. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests that the company has a strong ability to meet its short-term obligations using its readily available cash resources.

FormFactor Inc's cash ratio has generally been above 1.5, indicating a solid position in terms of liquidity. The upward trend in the cash ratio from 2019 to 2023 suggests an improvement in the company's liquidity position over time. However, it is important to note that a very high cash ratio may also indicate that the company is not efficiently utilizing its cash resources.

Overall, the trend in FormFactor Inc's cash ratio demonstrates a healthy liquidity position, providing the company with the ability to meet its short-term financial commitments comfortably.