Lumentum Holdings Inc (LITE)
Quick 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 | 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 |
| Receivables | US$ in thousands | 5,800 | 5,000 | 7,200 | 8,000 | 6,700 | — | 5,300 | — | 3,900 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 3.32 | 2.76 | 1.87 | 3.29 | 3.19 | 2.17 | 2.07 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($436,700K
+ $450,300K
+ $5,800K)
÷ $269,300K
= 3.32
The quick ratio of Lumentum Holdings Inc has exhibited fluctuations over the historical period provided. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
From the data provided, we can see that the quick ratio has generally been above 1, indicating a strong ability to cover short-term obligations. The quick ratio peaked at 5.49 in September 2020 and March 2020, suggesting a significant surplus of liquid assets compared to current liabilities during those periods.
However, there are some quarters where the quick ratio dropped below 2, indicating a lower level of liquidity to cover short-term obligations. For example, in December 2023, the quick ratio was 1.87, which may raise concerns about the company's ability to meet its short-term liabilities without converting other assets into cash.
Overall, the trend in Lumentum's quick ratio suggests a generally healthy liquidity position, with occasional fluctuations that may require closer monitoring to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Jun 30, 2024