Lumentum Holdings Inc (LITE)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,590,100 | 2,777,900 | 3,139,200 | 2,436,800 | 2,050,000 |
| Total current liabilities | US$ in thousands | 269,300 | 633,800 | 716,500 | 664,600 | 283,000 |
| Current ratio | 5.90 | 4.38 | 4.38 | 3.67 | 7.24 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,590,100K ÷ $269,300K
= 5.90
Lumentum Holdings Inc's current ratio has exhibited variations over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, stood at 5.90 as of June 30, 2024. This represents a significant improvement compared to the previous year's ratio of 4.38.
The current ratio had been relatively stable at 4.38 in both June 30, 2023, and June 30, 2022, suggesting a consistent ability to meet short-term commitments during those periods. However, there was a slight decrease in the ratio to 3.67 as of June 30, 2021, which may indicate a potential strain on liquidity.
An interesting observation is the significant increase in the current ratio to 7.24 as of June 30, 2020, suggesting a strong liquidity position at that time. This increase could be due to various factors, such as increased cash reserves or reduced short-term liabilities.
Overall, the current ratio of Lumentum Holdings Inc has shown fluctuations over the past five years, with the most recent ratio indicating a robust ability to cover short-term obligations with current assets. It is important to continue monitoring this ratio along with other financial metrics to assess the company's overall financial health.
Peer comparison
Jun 30, 2024