Ichor Holdings Ltd (ICHR)

Current 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
Total current assets	US$ in thousands	401,365	451,325	452,065	469,598	513,458	535,582	500,493	459,563	462,771	549,515	540,520	503,029	495,714	326,200	317,389	279,745	276,947	218,222	196,366	205,615
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
Current ratio		4.06	3.90	4.25	3.97	3.09	2.61	2.52	2.37	2.22	3.04	2.73	2.75	3.06	2.20	2.04	1.85	1.69	1.90	2.29	2.27

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $401,365K ÷ $98,962K
= 4.06

The current ratio of Ichor Holdings Ltd has exhibited fluctuations over the past few periods, ranging from a low of 1.69 to a high of 4.25. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates stronger liquidity and financial health, as the company has more current assets to cover its current liabilities.

In the most recent period, as of December 31, 2023, the current ratio stood at 4.06, indicating a significant increase from the previous quarters. This suggests that Ichor Holdings Ltd had a substantial amount of current assets in comparison to its current liabilities, reflecting a strong liquidity position. A current ratio above 2 is generally considered healthy, as it indicates that the company can comfortably meet its short-term obligations.

However, it is important to note that a very high current ratio may also indicate inefficient use of assets or an excessive amount of cash and equivalents on hand. Conversely, a low current ratio may suggest liquidity issues or difficulties in meeting short-term obligations. It is essential to analyze other financial ratios and aspects of the company's financial performance to get a comprehensive understanding of its overall financial health.