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.