Illumina Inc (ILMN)
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 | 1,048,000 | 927,000 | 1,553,000 | 1,494,000 | 2,011,000 | 1,000,000 | 1,289,000 | 1,351,000 | 1,232,000 | 1,080,000 | 4,196,000 | 4,433,000 | 1,810,000 | 1,761,000 | 1,770,000 | 1,991,000 | 2,042,000 | 1,815,000 | 1,943,000 | 2,270,000 |
| Short-term investments | US$ in thousands | 6,000 | 6,000 | 6,000 | 24,000 | 26,000 | 41,000 | 38,000 | 65,000 | 107,000 | 185,000 | 90,000 | 197,000 | 1,662,000 | 1,563,000 | 1,498,000 | 1,341,000 | 1,372,000 | 1,351,000 | 1,230,000 | 1,345,000 |
| Total current liabilities | US$ in thousands | 1,570,000 | 1,482,000 | 2,303,000 | 2,230,000 | 2,773,000 | 2,669,000 | 2,881,000 | 1,490,000 | 1,093,000 | 914,000 | 874,000 | 1,268,000 | 1,244,000 | 1,115,000 | 1,115,000 | 1,054,000 | 665,000 | 619,000 | 612,000 | 1,241,000 |
| Cash ratio | 0.67 | 0.63 | 0.68 | 0.68 | 0.73 | 0.39 | 0.46 | 0.95 | 1.23 | 1.38 | 4.90 | 3.65 | 2.79 | 2.98 | 2.93 | 3.16 | 5.13 | 5.11 | 5.18 | 2.91 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,048,000K
+ $6,000K)
÷ $1,570,000K
= 0.67
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Looking at Illumina Inc's cash ratio over the past eight quarters, we observe some fluctuations. In Q1 2022, the company had a high cash ratio of 1.12, indicating a very strong ability to cover short-term liabilities with its available cash. However, this ratio decreased in subsequent quarters, reaching a low of 0.49 in Q3 2022.
In more recent quarters, Illumina Inc's cash ratio has been relatively stable around the range of 0.81 to 0.86, suggesting a consistent ability to meet short-term obligations with its cash reserves. Although these ratios are lower than the peak seen in Q1 2022, they still indicate a reasonable liquidity position.
Overall, based on the trend of Illumina Inc's cash ratio, the company appears to have maintained a moderate to strong liquidity position, with the ability to cover short-term liabilities effectively with its cash and cash equivalents. It would be advantageous for the company to continue monitoring its cash reserves to ensure sufficient liquidity for operational needs and potential unforeseen circumstances.
Peer comparison
Dec 31, 2023