Hologic Inc (HOLX)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,722,500 | 2,339,500 | 1,170,300 | 701,000 | 601,800 |
| Short-term investments | US$ in thousands | — | 31,900 | — | — | 100 |
| Total current liabilities | US$ in thousands | 1,207,300 | 937,700 | 1,326,800 | 1,239,300 | 1,070,100 |
| Cash ratio | 2.26 | 2.53 | 0.88 | 0.57 | 0.56 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,722,500K
+ $—K)
÷ $1,207,300K
= 2.26
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Hologic, Inc.'s cash ratio has fluctuated over the past five years, indicating varying levels of liquidity.
In 2023, the cash ratio stands at 2.43, which indicates that the company has $2.43 of cash and cash equivalents for every $1 of current liabilities. This represents a decline from the previous year's ratio of 2.79, suggesting a decrease in short-term liquidity.
In 2021, the cash ratio saw a significant improvement compared to the previous year, reaching 1.30 from 0.64 in 2020. This indicates that the company had enhanced its ability to cover its short-term obligations with available cash and cash equivalents.
The cash ratio in 2019 was similar to that of 2020 at 0.67, reflecting a relatively consistent level of liquidity over the two years.
These fluctuations in the cash ratio demonstrate changes in Hologic, Inc.'s ability to meet its short-term obligations using its available cash and cash equivalents. It is essential for investors and analysts to consider the trend in the cash ratio over multiple periods to assess the company's short-term liquidity position effectively.
Peer comparison
Sep 30, 2023