Haemonetics Corporation (HAE)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	178,800	193,978	351,005	285,719	284,466	224,002	241,200	214,948	259,496	236,877	192,420	173,462	192,305	189,002	279,169	275,725	137,311	126,417	112,030	190,234
Short-term investments	US$ in thousands	—	1,146	2,576	2,442	1,110	1,687	1,114	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	300,383	261,755	264,215	236,939	251,816	226,889	262,175	180,487	442,266	355,411	288,470	228,339	253,495	194,384	338,568	407,827	274,822	256,692	240,066	293,665
Cash ratio		0.60	0.75	1.34	1.22	1.13	0.99	0.92	1.19	0.59	0.67	0.67	0.76	0.76	0.97	0.82	0.68	0.50	0.49	0.47	0.65

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 few quarters, reflecting the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend shows a generally positive movement from the fourth quarter of 2019 to the third quarter of 2023, with some fluctuations in between. The cash ratio was above 1.0 in some quarters, indicating that the company had more than enough cash to cover its short-term liabilities. This demonstrates a strong liquidity position and ability to meet its immediate financial obligations.

However, there were quarters where the cash ratio dropped below 1.0, suggesting a lower level of liquidity and potential challenges in meeting short-term obligations solely with cash on hand. It's worth noting that having a cash ratio significantly above 1.0 may also indicate that the company is not efficiently utilizing its cash resources.

Overall, a higher cash ratio is generally preferred as it indicates a stronger ability to weather unexpected financial challenges. Haemonetics Corporation should continue to monitor its cash position and liquidity to ensure it can meet its short-term obligations efficiently.