Kulicke and Soffa Industries Inc (KLIC)

Current ratio

		Sep 30, 2024	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
Total current assets	US$ in thousands	994,953	1,013,090	1,050,420	1,177,650	1,189,060	1,183,050	1,188,870	1,270,710	1,332,050	1,386,120	1,321,860	1,463,060	1,351,890	1,179,590	1,035,740	949,611	860,196	839,193	970,427	926,607
Total current liabilities	US$ in thousands	183,794	165,977	165,736	181,288	181,551	196,776	195,751	221,055	248,681	274,039	274,889	343,805	351,875	308,260	259,572	200,690	157,893	142,804	262,037	202,203
Current ratio		5.41	6.10	6.34	6.50	6.55	6.01	6.07	5.75	5.36	5.06	4.81	4.26	3.84	3.83	3.99	4.73	5.45	5.88	3.70	4.58

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $994,953K ÷ $183,794K
= 5.41

The current ratio of Kulicke and Soffa Industries Inc has shown a consistent upward trend over the past few quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to meet short-term liabilities.

The current ratio improved from 4.58 in December 2019 to 6.50 in December 2023, signaling an increase in liquidity and the company's ability to pay off its short-term debts. Furthermore, the current ratio has generally remained above 5 in recent quarters, indicating a healthy financial position.

The current ratio peaked at 6.55 in September 2023, before gradually stabilizing around the 6.00 level in subsequent quarters. This indicates that the company has a substantial amount of current assets compared to its current liabilities, which bodes well for its short-term financial stability.

Overall, the upward trend in the current ratio suggests that Kulicke and Soffa Industries Inc has been effectively managing its liquidity and short-term obligations, providing a solid foundation for its financial health and operational sustainability.