Kulicke and Soffa Industries Inc (KLIC)

Kulicke and Soffa Industries Inc has exhibited consistent and healthy liquidity ratios over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 3.84 to 6.55, indicating a strong ability to meet its current liabilities with its current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend, ranging from 3.30 to 5.06. This suggests that the company has a solid ability to meet its short-term liabilities without relying on selling inventory.

Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated between 2.10 and 4.18. This indicates that Kulicke and Soffa Industries Inc has maintained a sufficient level of cash to meet its short-term obligations over the years.

Overall, the liquidity ratios of Kulicke and Soffa Industries Inc demonstrate a strong financial position with ample liquidity to support its ongoing operations and meet its financial obligations in the short term.

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Additional liquidity measure

The cash conversion cycle of Kulicke and Soffa Industries Inc has fluctuated over the past five years, indicating variations in the efficiency of its working capital management.

In 2024, the company's cash conversion cycle decreased to 199.41 days from 237.72 days in 2023. This suggests that the company took less time to convert its investments in inventory and accounts receivable into cash during the year, potentially improving its liquidity position.

Compared to 2022, where the cash conversion cycle was 131.95 days, the cycle lengthened in 2024. This indicates that the company may have taken longer to convert its resources into cash in the most recent year, which can impact its cash flow and overall financial health.

In 2021, the cash conversion cycle was 106.94 days, the lowest among the five years, showcasing the company's strong performance in efficiently managing its working capital during that period.

However, in 2020, the cycle increased to 177.09 days from 106.94 days in 2021, representing a deteriorating trend in the efficiency of working capital management.

Overall, analyzing the cash conversion cycle of Kulicke and Soffa Industries Inc over the past five years highlights the importance of monitoring working capital efficiency to ensure optimal cash flow and liquidity management.