Micron Technology Inc (MU)
Cash ratio
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,041,000 | 8,577,000 | 8,262,000 | 7,763,000 | 7,624,000 |
| Short-term investments | US$ in thousands | 1,065,000 | 1,017,000 | 1,069,000 | 870,000 | 518,000 |
| Total current liabilities | US$ in thousands | 9,248,000 | 4,765,000 | 7,539,000 | 6,424,000 | 6,635,000 |
| Cash ratio | 0.88 | 2.01 | 1.24 | 1.34 | 1.23 |
August 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,041,000K
+ $1,065,000K)
÷ $9,248,000K
= 0.88
The cash ratio measures a company's ability to cover its short-term liabilities using only cash and cash equivalents. A higher cash ratio indicates the company has a greater ability to pay off its obligations in the short term.
Looking at the trend of Micron Technology Inc's cash ratio over the past five years, we can see fluctuations in the ratio. In the most recent year, as of Aug 29, 2024, the cash ratio stands at 0.88, which is lower compared to the previous year's ratio of 2.01. This suggests that the company may have relatively less cash on hand to cover its short-term liabilities.
It is important to note that a cash ratio below 1 may indicate that the company does not have enough cash and cash equivalents to cover its short-term liabilities entirely, which could potentially lead to liquidity issues. Therefore, management may need to closely monitor the company's cash position and liquidity management to ensure financial stability and meet its short-term obligations.
Peer comparison
Aug 29, 2024