Lumentum Holdings Inc (LITE)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 436,700 | 425,000 | 469,300 | 861,500 | 859,000 | 549,200 | 592,100 | 605,300 | 1,290,200 | 1,130,300 | 552,000 | 611,000 | 774,300 | 687,700 | 321,300 | 269,500 | 298,000 | 688,300 | 1,085,000 | 539,000 |
| Short-term investments | US$ in thousands | 450,300 | 445,900 | 754,700 | 1,082,700 | 1,154,600 | 1,118,000 | 1,088,300 | 1,019,600 | 1,258,800 | 1,433,800 | 1,470,400 | 1,273,600 | 1,171,700 | 1,366,900 | 1,379,000 | 1,341,200 | 1,255,800 | 763,100 | 230,600 | 291,900 |
| Total current liabilities | US$ in thousands | 269,300 | 317,600 | 658,400 | 593,700 | 633,800 | 768,900 | 814,300 | 802,800 | 716,500 | 660,700 | 656,700 | 611,700 | 664,600 | 674,200 | 647,300 | 293,400 | 283,000 | 286,700 | 304,200 | 316,800 |
| Cash ratio | 3.29 | 2.74 | 1.86 | 3.27 | 3.18 | 2.17 | 2.06 | 2.02 | 3.56 | 3.88 | 3.08 | 3.08 | 2.93 | 3.05 | 2.63 | 5.49 | 5.49 | 5.06 | 4.32 | 2.62 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($436,700K
+ $450,300K)
÷ $269,300K
= 3.29
The cash ratio for Lumentum Holdings Inc has shown fluctuation over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources or liquidating other assets.
Looking at the trend, the cash ratio has generally remained above 2, indicating that the company has a comfortable level of cash to cover its short-term liabilities. The ratio peaked at 5.49 in the last two quarters of 2020, indicating a significant increase in the company's cash position relative to its short-term obligations during that period.
Although the ratio has decreased since then, it has generally stayed above 2, suggesting that the company's liquidity position remains strong. However, a decreasing trend in the cash ratio over the past few quarters may indicate a potential need for further monitoring to ensure that the company maintains an adequate cash position to meet its short-term obligations.
Overall, the cash ratio analysis suggests that Lumentum Holdings Inc has maintained a satisfactory liquidity position, but it is important for stakeholders to track any changes in the ratio to assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Jun 30, 2024