Mercury Systems Inc (MRCY)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | -3,577 | 180,521 | 71,563 | 65,654 | 113,839 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 300,377 | 234,416 | 233,264 | 193,927 | 150,823 |
| Cash ratio | -0.01 | 0.77 | 0.31 | 0.34 | 0.75 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($-3,577K
+ $—K)
÷ $300,377K
= -0.01
The cash ratio of Mercury Systems Inc demonstrates notable fluctuations across the observed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's cash ratio stood at 0.75, indicating that it held sufficient cash and cash equivalents to cover approximately 75% of its current liabilities, reflecting a relatively comfortable liquidity position. However, this ratio declined significantly by June 30, 2022, reaching 0.34, which suggests a reduction in the company's immediate liquidity cushion—less than half of its current liabilities were covered by cash and cash equivalents at that point.
The downward trend persisted into June 30, 2023, where the cash ratio further decreased to 0.31, indicating a continued weakening in the company's liquidity posture. However, a notable rebound is observed in subsequent years: by June 30, 2024, the cash ratio increased sharply to 0.77, surpassing the 2021 level and suggesting improved liquidity with cash holdings more than covering a majority of current liabilities.
Contrastingly, as of June 30, 2025, the cash ratio sharply declined into negative territory at -0.01. Although a negative cash ratio is mathematically indicative of the company's cash and cash equivalents being insufficient to cover current liabilities, in accounting terms it often signals that the company's cash position is exceedingly strained or possibly that there are accounting anomalies or timing issues influencing the ratio. This appears as an anomaly in the context of typical cash ratio interpretation, as negative ratios are uncommon and generally reflect cash deficits that exceed current liabilities.
Overall, the cash ratio trend from 2021 through 2025 reveals periods of considerable fluctuation in liquidity. The initial high level in 2021 declined substantially by 2022 and 2023, indicating decreased immediate liquidity, before experiencing a significant recovery in 2024. The negative value in 2025 warrants further investigation to understand underlying factors impacting liquidity. This fluctuating pattern underscores the importance of ongoing liquidity management and suggests potential liquidity risks, particularly around the 2025 period.
Peer comparison
Jun 30, 2025