Ichor Holdings Ltd (ICHR)

Cash ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 79,955 75,933 84,608 68,837 86,470 56,463 46,064 34,516 75,495 128,038 141,714 242,946 252,899 78,919 56,969 41,583 60,612 30,175 41,456 31,611
Short-term investments US$ in thousands — — — — — — — — — 98,706 104,951 — — — — — — — — —
Total current liabilities US$ in thousands 98,962 115,668 106,404 118,225 166,292 205,063 198,920 194,066 208,303 180,973 197,738 183,084 162,034 148,299 155,357 151,437 163,867 115,002 85,933 90,490
Cash ratio 0.81 0.66 0.80 0.58 0.52 0.28 0.23 0.18 0.36 1.25 1.25 1.33 1.56 0.53 0.37 0.27 0.37 0.26 0.48 0.35

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 varied over the historical periods provided in the table. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off short-term obligations.

Looking at the trend, the cash ratio has fluctuated significantly over the periods. It ranged from a low of 0.18 in March 2022 to a high of 1.56 in December 2020. This indicates varying levels of liquidity and cash positions within the company during these periods.

In recent quarters, the cash ratio has generally been above 1, suggesting that Ichor Holdings Ltd had more than enough cash and cash equivalents to cover its short-term liabilities in those periods. However, the cash ratio dropped to 0.58 in March 2023, indicating a decrease in the company's liquidity position at that point in time.

Overall, it is important to monitor the cash ratio over time to assess the company's liquidity position and its ability to meet its short-term financial obligations.