Mercury Systems Inc (MRCY)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 180,521 | 71,563 | 65,654 | 113,839 | 226,838 |
| Short-term investments | US$ in thousands | — | — | — | — | 2,007 |
| Total current liabilities | US$ in thousands | 234,416 | 233,264 | 193,927 | 150,823 | 125,915 |
| Cash ratio | 0.77 | 0.31 | 0.34 | 0.75 | 1.82 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($180,521K
+ $—K)
÷ $234,416K
= 0.77
The cash ratio for Mercury Systems Inc has shown a fluctuating trend over the past five years. As of June 30, 2024, the cash ratio stands at 0.77, indicating that the company has $0.77 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement from the previous year's ratio of 0.31, suggesting a notable increase in the company's liquidity position.
However, when comparing the current cash ratio to the ratios from two years ago (0.34) and three years ago (0.75), it appears that there have been fluctuations in Mercury Systems Inc's ability to cover its short-term obligations with cash on hand. The highest cash ratio of 1.82 was reported in June 30, 2020, indicating a higher level of liquidity compared to the most recent year.
Overall, while the current cash ratio of 0.77 shows an improvement in liquidity compared to the previous year, the company may want to monitor its ability to maintain a consistent and adequate level of cash reserves to meet its short-term financial obligations effectively.
Peer comparison
Jun 30, 2024