Haemonetics Corporation (HAE)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	178,800	284,466	259,496	192,305	137,311
Short-term investments	US$ in thousands	—	1,110	—	—	—
Total current liabilities	US$ in thousands	300,383	251,816	442,266	253,495	274,822
Cash ratio		0.60	1.13	0.59	0.76	0.50

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,800K + $—K) ÷ $300,383K
= 0.60

The cash ratio of Haemonetics Corporation has fluctuated over the past five years, ranging from 0.50 to 1.13. The cash ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations with its readily available cash.

In 2023, the cash ratio was at its highest at 1.13, suggesting that the company had a comfortable cushion of cash to cover its short-term liabilities. However, in 2020, the cash ratio was at its lowest at 0.50, indicating a lower level of liquidity compared to the other years.

The downward trend seen in the cash ratio from 2023 to 2022 and 2021 may raise concerns about the company's liquidity position during those years. Further analysis of the company's cash position and cash flow management would be necessary to understand the factors contributing to these fluctuations in the cash ratio.