Haemonetics Corporation (HAE)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	306,763	178,800	284,466	259,496	192,305
Short-term investments	US$ in thousands	—	1,673	1,110	—	—
Total current liabilities	US$ in thousands	578,113	300,383	251,816	442,266	253,495
Cash ratio		0.53	0.60	1.13	0.59	0.76

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($306,763K + $—K) ÷ $578,113K
= 0.53

The cash ratio is a liquidity ratio that measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Haemonetics Corporation's cash ratio has fluctuated over the past five years. In March 2021, the cash ratio was 0.76, indicating that the company had $0.76 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy liquidity position.

However, in March 2022, the cash ratio decreased to 0.59, which may raise concerns about the company's ability to cover its short-term obligations solely with cash on hand.

The cash ratio improved significantly in March 2023 to 1.13, indicating a substantial increase in the company's liquidity position. This could be attributed to improved cash management practices or an increase in cash reserves.

In March 2024, the cash ratio fell back to 0.60, which is lower compared to the previous year. This decline may signal potential liquidity challenges in meeting short-term obligations with available cash.

Unfortunately, the cash ratio data for March 31, 2025, is not provided, represented by a dash. Without this information, it is challenging to assess Haemonetics Corporation's liquidity position for that year.

Overall, analyzing the trend in Haemonetics Corporation's cash ratio reveals fluctuations in liquidity levels over the years, highlighting the importance of closely monitoring cash management practices to ensure the company can meet its short-term obligations effectively.