Harmonic Inc (HLIT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 101,457 | 84,269 | 89,586 | 133,431 | 98,645 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 167,569 | 272,394 | 322,072 | 224,461 | 147,295 |
| Cash ratio | 0.61 | 0.31 | 0.28 | 0.59 | 0.67 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($101,457K
+ $—K)
÷ $167,569K
= 0.61
The cash ratio for Harmonic Inc has shown fluctuations over the years based on the provided data. It decreased from 0.67 on December 31, 2020, to 0.59 on December 31, 2021, indicating a decline in the company's ability to cover its current liabilities solely with cash and cash equivalents. The ratio further dropped to 0.28 on December 31, 2022, suggesting a more limited availability of liquid assets relative to current liabilities.
However, there was a slight improvement as of December 31, 2023, with the cash ratio increasing to 0.31, albeit still at a relatively low level. The most recent data point on December 31, 2024, reflects a recovery in the company's liquidity position, with the cash ratio rising to 0.61. This indicates an enhanced ability to meet short-term obligations using cash resources.
Overall, the trend in Harmonic Inc's cash ratio signals varying degrees of liquidity strength over the years, with some periods posing challenges while others show improvements. It is essential for the company to closely monitor its cash position and manage liquidity effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2024