Harmonic Inc (HLIT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 84,269 | 89,586 | 133,431 | 98,645 | 93,058 |
| Short-term investments | US$ in thousands | — | 0 | — | — | — |
| Total current liabilities | US$ in thousands | 272,394 | 322,072 | 224,461 | 147,295 | 191,899 |
| Cash ratio | 0.31 | 0.28 | 0.59 | 0.67 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($84,269K
+ $—K)
÷ $272,394K
= 0.31
The cash ratio for Harmonic, Inc. has exhibited fluctuations over the past five years. The ratio stood at 0.39 as of December 31, 2023, showing a slight increase compared to the previous year's figure of 0.36. However, it is notably lower than the ratios reported in 2021 and 2020, which were 0.73 and 0.93, respectively.
The company's cash ratio indicates its ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher ratio is generally preferred as it suggests a stronger liquidity position. The decreasing trend in the cash ratio over the years may imply that Harmonic, Inc. has been utilizing its cash resources for operational or investment activities rather than retaining them for potential short-term obligations.
It is essential for stakeholders to closely monitor the cash management practices of the company and consider the reasons behind the fluctuations in the cash ratio to assess the overall financial health and liquidity risk of Harmonic, Inc.
Peer comparison
Dec 31, 2023