Lam Research Corp (LRCX)

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	5,847,860	5,672,230	5,623,290	5,126,150	5,337,060	5,305,650	4,484,720	4,256,500	3,522,000	4,194,720	5,086,540	4,042,150	4,418,260	3,673,370	3,687,160	4,129,070	4,915,170	3,961,590	3,035,890	4,607,180
Short-term investments	US$ in thousands	—	—	14,720	30,557	37,641	63,849	103,130	120,551	135,731	160,072	242,590	569,472	1,310,870	2,116,100	2,355,070	2,528,840	1,795,080	1,431,550	1,647,870	983,650
Total current liabilities	US$ in thousands	4,338,440	4,430,090	4,272,380	4,247,180	4,184,920	4,441,330	4,546,920	5,053,380	4,564,760	4,194,740	3,863,150	3,409,220	3,527,870	3,612,330	3,591,050	3,406,870	3,162,440	2,105,660	2,565,500	2,457,680
Cash ratio		1.35	1.28	1.32	1.21	1.28	1.21	1.01	0.87	0.80	1.04	1.38	1.35	1.62	1.60	1.68	1.95	2.12	2.56	1.83	2.27

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,847,860K + $—K) ÷ $4,338,440K
= 1.35

The cash ratio of Lam Research Corp has exhibited some fluctuations over the given periods. The cash ratio represents the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

From the data provided, we observe that the cash ratio has generally been above 1, indicating that Lam Research Corp has had more than enough cash to cover its current liabilities in most of the recent periods. The ratio peaked at 2.56 in March 2020, suggesting a significant liquidity buffer at that time.

However, there have been fluctuations in the cash ratio over the periods, with some declining trends in certain quarters. For example, the ratio dropped to 0.80 in September 2022 before recovering in subsequent periods.

Analyzing trends in the cash ratio can provide insights into the company's liquidity management and financial health. Investors and stakeholders may monitor these changes to assess the company's ability to meet its short-term obligations effectively.