Ichor Holdings Ltd (ICHR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	79,955	86,470	75,495	252,899	60,612
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	98,962	166,292	208,303	162,034	163,867
Cash ratio		0.81	0.52	0.36	1.56	0.37

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($79,955K + $—K) ÷ $98,962K
= 0.81

The cash ratio of Ichor Holdings Ltd has fluctuated over the past five years. In 2023, the cash ratio improved significantly to 0.81, indicating the company had $0.81 of cash and cash equivalents for every $1 of current liabilities. This suggests that Ichor Holdings has a strong ability to cover its short-term financial obligations with cash on hand.

The previous year, 2022, saw a lower cash ratio of 0.52, which might have raised some concerns about the company's liquidity position. However, looking back to 2021 and 2019, the cash ratios were notably lower, at 0.36 and 0.37 respectively. This could indicate potential liquidity challenges during those years.

The most exceptional performance was in 2020, with a cash ratio of 1.56, which signifies a robust liquidity position. It indicates Ichor Holdings had more than enough cash and cash equivalents to cover its short-term liabilities.

Overall, while there have been fluctuations in the cash ratio of Ichor Holdings Ltd over the years, the recent improvement in 2023 is a positive sign of the company's ability to meet its short-term obligations with its current cash holdings.