Kulicke and Soffa Industries Inc (KLIC)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	227,147	529,402	555,537	362,788	188,127
Short-term investments	US$ in thousands	350,000	230,000	220,000	377,000	342,000
Total current liabilities	US$ in thousands	183,794	181,551	248,681	351,875	157,893
Cash ratio		3.14	4.18	3.12	2.10	3.36

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,147K + $350,000K) ÷ $183,794K
= 3.14

The cash ratio of Kulicke and Soffa Industries Inc has displayed fluctuating trends over the past five years. The company's cash ratio was highest in 2023 at 4.18, indicating that it had $4.18 of cash and cash equivalents for every $1 of current liabilities during that period. This high cash ratio suggests that the company had a strong ability to cover its short-term obligations with its available cash resources.

In 2024, the cash ratio decreased to 3.14, which still indicates a healthy liquidity position but is lower than the previous year. A declining cash ratio may suggest a decrease in the company's ability to cover its short-term liabilities solely with its cash reserves. However, a cash ratio of 3.14 is considered relatively high and indicates a good level of liquidity for meeting short-term obligations.

In comparison, the cash ratio was also relatively strong in 2022 and 2020 at 3.12 and 3.36 respectively, while it was lower in 2021 at 2.10. Overall, the company has maintained a healthy cash position over the years, which is important for its operational efficiency and financial stability.

It is essential for investors and stakeholders to monitor the cash ratio over time to assess the company's liquidity position and its ability to meet short-term obligations. A consistent and high cash ratio generally indicates that the company has sufficient liquid assets to support its operations and withstand potential financial challenges.