IPG Photonics Corporation (IPGP)

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	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	680,070	580,329	530,013	548,938
Short-term investments	US$ in thousands	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	502,546	498,508	512,816	481,139
Total current liabilities	US$ in thousands	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	191,904	205,563	222,228	209,816
Cash ratio		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	6.16	5.25	4.69	4.91

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($514,674K + $662,807K) ÷ $214,861K
= 5.48

The cash ratio of IPG Photonics Corp has shown a steady increase over the past eight quarters, indicating the company's improving ability to cover its short-term obligations with cash and cash equivalents. The ratio has ranged between 4.33 and 5.78 during this period, with the most recent value in Q4 2023 reaching 5.78. This suggests that IPG Photonics Corp had $5.78 of cash and cash equivalents for every $1 of current liabilities in Q4 2023.

The consistent upward trend in the cash ratio reflects the company's strong liquidity position and effective cash management practices. A higher cash ratio indicates a lower risk of liquidity issues and the ability to handle unexpected expenses or economic downturns. IPG Photonics Corp's increasing cash ratio suggests a healthy financial position and the ability to meet its short-term obligations comfortably.