KLA-Tencor Corporation (KLAC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,977,130 | 1,927,860 | 1,584,910 | 1,434,610 | 1,980,470 |
| Short-term investments | US$ in thousands | 2,526,870 | 1,315,290 | 1,123,100 | 1,059,910 | 746,063 |
| Total current liabilities | US$ in thousands | 4,660,770 | 3,742,840 | 2,871,080 | 2,103,230 | 1,699,790 |
| Cash ratio | 0.97 | 0.87 | 0.94 | 1.19 | 1.60 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,977,130K
+ $2,526,870K)
÷ $4,660,770K
= 0.97
The cash ratio is a financial metric that indicates a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio suggests that the company has a stronger ability to meet its short-term liabilities using its readily available cash resources.
Analyzing KLA-Tencor Corporation's cash ratio over the past five years, we observe fluctuations in the ratio. As of June 30, 2024, the cash ratio stands at 0.97, which indicates that for every dollar of current liabilities, the company has $0.97 of cash and cash equivalents available to settle those obligations.
Comparing this to the previous years:
- In June 2023, the cash ratio was 0.87, suggesting a lower ability to cover short-term liabilities with cash.
- June 2022 saw a slight improvement with a cash ratio of 0.94, indicating a better liquidity position compared to the previous year.
- The cash ratio was relatively high in June 2021 at 1.19, indicating a strong ability to cover short-term obligations with cash.
- In June 2020, the cash ratio was 1.17, showing a similar strong liquidity position as the previous year.
Overall, the trend in KLA-Tencor's cash ratio fluctuates year to year. It is important to consider the industry benchmarks and peer comparisons to gain a better understanding of the company's liquidity position and its ability to meet short-term obligations efficiently.
Peer comparison
Jun 30, 2024