Ichor Holdings Ltd (ICHR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	108,669	79,955	86,470	75,495	252,899
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	135,670	98,962	166,292	208,303	162,034
Cash ratio		0.80	0.81	0.52	0.36	1.56

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($108,669K + $—K) ÷ $135,670K
= 0.80

Based on the provided data, Ichor Holdings Ltd's cash ratio has exhibited fluctuations over the years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

As of December 31, 2020, the cash ratio was 1.56, indicating that the company had $1.56 in cash and cash equivalents for every dollar of short-term liabilities. However, by December 31, 2021, the cash ratio had significantly dropped to 0.36, suggesting a decline in the company's ability to meet its short-term obligations with available cash.

Subsequently, there was a slight improvement in the cash ratio to 0.52 as of December 31, 2022. This indicates that the company may have enhanced its liquidity position compared to the previous year but still remains relatively constrained in its ability to cover short-term liabilities solely with cash.

By December 31, 2023, the cash ratio further improved to 0.81, showing a healthier liquidity position for Ichor Holdings Ltd. The company's ability to meet short-term obligations with cash and cash equivalents has strengthened, reflecting positive financial management decisions.

As of December 31, 2024, the cash ratio remained relatively stable at 0.80, maintaining the improved liquidity position observed in the previous year. Overall, while there have been fluctuations in the cash ratio over the years, the company has made progress in managing its liquidity and ensuring it has adequate resources to cover short-term liabilities.