Lumentum Holdings Inc (LITE)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 520,700 | 436,700 | 859,000 | 1,290,200 | 774,300 |
| Short-term investments | US$ in thousands | 356,400 | 450,300 | 1,154,600 | 1,258,800 | 1,171,700 |
| Total current liabilities | US$ in thousands | 392,800 | 269,300 | 633,800 | 716,500 | 664,600 |
| Cash ratio | 2.23 | 3.29 | 3.18 | 3.56 | 2.93 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($520,700K
+ $356,400K)
÷ $392,800K
= 2.23
The cash ratio of Lumentum Holdings Inc. demonstrates a generally strong liquidity position across the observed period from June 30, 2021, through June 30, 2025. Initially, on June 30, 2021, the cash ratio was recorded at 2.93, indicating that the company had nearly three times the amount of cash and cash-equivalents relative to its current liabilities. This high ratio suggests a conservative liquidity stance, providing a substantial cushion to cover short-term obligations solely with liquid assets.
By June 30, 2022, the cash ratio increased to 3.56, reflecting an improvement in liquidity and suggesting that the company's cash holdings either increased relative to current liabilities or that current liabilities decreased. This elevated level further underscores the company's conservative liquidity management during this period.
However, by June 30, 2023, the ratio slightly declined to 3.18, signaling a modest reduction in liquidity but still maintaining a robust liquidity buffer. The ratio experienced a slight uptick again in June 30, 2024, reaching 3.29, which indicates a marginal improvement in liquidity position compared to the previous year.
Lastly, as of June 30, 2025, the cash ratio decreased further to 2.23, signaling a notable reduction in the liquidity buffer compared to prior years. Despite this decrease, the ratio remains well above 1, which typically signifies that the company has more than enough cash to cover its current liabilities with liquid assets alone. This trend suggests a gradual decline in the company's cash holdings relative to current liabilities, potentially due to increased operational investments, stock buybacks, or strategic shifts in liquidity management.
Overall, while fluctuations are observed, Lumentum Holdings Inc.'s cash ratio consistently remains at a high level, indicating a robust liquidity position throughout the period, albeit with a decreasing trend in recent years.
Peer comparison
Jun 30, 2025