IPG Photonics Corporation (IPGP)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	620,040	883,871	720,540	496,452	514,674	528,284	573,071	521,137	698,209	869,274	771,788	642,517	709,105	794,904	754,199	896,741	876,231	763,920	747,859	570,058
Short-term investments	US$ in thousands	310,152	135,444	343,363	643,655	662,807	605,207	523,341	548,473	479,374	365,409	462,865	774,161	805,400	724,103	743,210	548,196	514,835	537,696	501,040	625,085
Total current liabilities	US$ in thousands	205,019	194,182	190,483	192,127	214,861	219,709	228,187	249,522	274,646	295,788	315,902	279,836	313,433	292,840	255,905	214,753	214,578	201,445	195,286	195,432
Cash ratio		4.54	5.25	5.59	5.93	5.48	5.16	4.80	4.29	4.29	4.17	3.91	5.06	4.83	5.19	5.85	6.73	6.48	6.46	6.40	6.12

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($620,040K + $310,152K) ÷ $205,019K
= 4.54

The cash ratio of IPG Photonics Corporation has fluctuated over the past few years, ranging from a high of 6.73 in March 31, 2021, to a low of 3.91 in June 30, 2022. The cash ratio measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to cover short-term obligations.

In general, IPG Photonics Corporation has maintained a relatively healthy cash ratio above 5.0, with a few fluctuations. However, it is worth noting that the ratio declined notably from June 30, 2021, to December 31, 2021, hitting a low of 4.83. This decrease may indicate a reduced ability to cover short-term liabilities with cash during that period.

Overall, the cash ratio of IPG Photonics Corporation has shown some variability, but it has generally remained at satisfactory levels, providing a buffer for the company to meet its short-term financial obligations with its available cash resources.