Keysight Technologies Inc (KEYS)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,796,000 | 2,472,000 | 2,042,000 | 2,052,000 | 1,756,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 52,000 |
| Total current liabilities | US$ in thousands | 1,427,000 | 2,049,000 | 1,407,000 | 1,309,000 | 1,081,000 |
| Cash ratio | 1.26 | 1.21 | 1.45 | 1.57 | 1.67 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,796,000K
+ $—K)
÷ $1,427,000K
= 1.26
The cash ratio of Keysight Technologies Inc has exhibited a decreasing trend over the past five years, declining from 1.67 in October 2020 to 1.26 in October 2024. This ratio indicates the company's ability to cover its short-term liabilities solely with cash and cash equivalents.
A higher cash ratio signifies a stronger liquidity position, as the company has more cash available to meet its short-term obligations. Keysight's cash ratio has generally remained above 1.0, suggesting that it has sufficient cash on hand to cover its immediate debts.
However, the decreasing trend in the cash ratio may raise concerns about the company's liquidity efficiency. It is important for investors and stakeholders to monitor this trend to ensure that Keysight Technologies Inc maintains a healthy balance between its cash reserves and short-term obligations.
Peer comparison
Oct 31, 2024