KLA-Tencor Corporation (KLAC)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019
Current ratio 2.15 2.14 1.91 2.21 2.24 2.35 2.34 2.43 2.50 2.33 2.41 2.44 2.71 2.66 2.59 2.72 2.78 2.61 2.55 2.24
Quick ratio 1.36 1.33 1.13 1.30 1.33 1.42 1.48 1.53 1.57 1.48 1.64 1.62 1.81 1.80 1.74 1.76 1.82 1.67 1.67 1.45
Cash ratio 0.97 0.96 0.73 0.88 0.87 0.85 0.82 0.94 0.94 0.91 1.01 1.04 1.19 1.20 1.14 1.17 1.17 0.99 0.98 0.90

KLA-Tencor Corporation's liquidity ratios have shown variability over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally remained above 2, indicating a strong liquidity position. However, there was a slight decline in the current ratio from the most recent quarter, suggesting a potential dip in short-term liquidity compared to previous periods.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed fluctuations, ranging from 1.13 to 1.81 over the past few quarters. Despite some volatility, the quick ratio has generally been above 1, indicating that KLA-Tencor has an adequate level of liquid assets to cover its short-term liabilities.

The cash ratio, which specifically assesses the company's ability to cover immediate liabilities with its cash and cash equivalents, has also shown variability, with values ranging from 0.73 to 1.20. The company's cash ratio has generally been well above 1, suggesting that KLA-Tencor has a sufficient level of cash to meet its most immediate obligations.

Overall, KLA-Tencor Corporation has maintained relatively strong liquidity positions based on its current, quick, and cash ratios. However, the fluctuations in these ratios over the quarterly periods indicate the importance of closely monitoring the company's liquidity management strategies to ensure continued financial stability.

See also:

KLA-Tencor Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 316.91 313.74 321.89 294.60 279.70 270.01 258.73 254.34 246.22 237.33 243.32 236.44 231.31 228.94 242.29 232.11 225.73 226.81 239.10 259.92

The cash conversion cycle for KLA-Tencor Corporation has been fluctuating over the past few quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

On average, the cash conversion cycle for KLA-Tencor Corporation has ranged from approximately 225 days to 321 days over the past several quarters. A shorter cash conversion cycle indicates more efficient management of working capital, while a longer cycle suggests that the company is taking longer to generate cash from its operations.

In the most recent quarter, the cash conversion cycle was 316.91 days, indicating that it took the company over nine months to convert its investments in inventory and resources into cash inflows from sales. This may suggest challenges in managing inventory levels, collections from customers, or payment to suppliers, impacting the company's liquidity and cash flow efficiency.

It is important for KLA-Tencor Corporation to focus on optimizing its cash conversion cycle by streamlining its operations, improving inventory management, and accelerating collections from customers to enhance its overall financial performance and liquidity position.