Micron Technology Inc (MU)
Liquidity ratios
| Aug 29, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | Mar 2, 2023 | Dec 1, 2022 | Sep 1, 2022 | Jun 2, 2022 | Mar 3, 2022 | Dec 2, 2021 | Sep 2, 2021 | Jun 3, 2021 | Mar 4, 2021 | Dec 3, 2020 | Sep 3, 2020 | May 28, 2020 | Feb 27, 2020 | Nov 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.64 | 3.41 | 3.74 | 3.53 | 4.46 | 4.26 | 4.17 | 3.51 | 2.89 | 3.24 | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | 2.71 | 2.89 | 2.74 | 2.56 |
| Quick ratio | 1.59 | 1.98 | 2.13 | 2.01 | 2.53 | 2.50 | 2.49 | 2.13 | 1.92 | 2.35 | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | 1.82 | 1.98 | 1.81 | 1.74 |
| Cash ratio | 0.88 | 1.22 | 1.44 | 1.52 | 2.01 | 2.03 | 2.06 | 1.62 | 1.24 | 1.46 | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | 1.23 | 1.40 | 1.28 | 1.20 |
Micron Technology Inc has maintained healthy liquidity levels over the past few quarters as evidenced by its current ratio, quick ratio, and cash ratio. The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, has shown a consistent upward trend, ranging from 2.64 to 4.46. This indicates that Micron has more than enough current assets to cover its current liabilities, providing a buffer against potential financial difficulties.
The quick ratio, which excludes inventory from current assets, remained relatively stable and above 1.5 in most periods, indicating that the company can meet its short-term obligations without relying heavily on inventory liquidation. This suggests a strong ability to pay off immediate debts without significant delays.
Furthermore, the cash ratio, which focuses solely on the cash and cash equivalents available to cover current liabilities, also demonstrates a strong liquidity position for Micron. The company consistently maintained a cash ratio above 1.0, indicating a solid ability to settle short-term obligations using readily available cash resources.
Overall, Micron Technology Inc's liquidity ratios paint a positive picture of the company's financial health and its ability to manage short-term financial obligations effectively.
See also:
Additional liquidity measure
| Aug 29, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | Mar 2, 2023 | Dec 1, 2022 | Sep 1, 2022 | Jun 2, 2022 | Mar 3, 2022 | Dec 2, 2021 | Sep 2, 2021 | Jun 3, 2021 | Mar 4, 2021 | Dec 3, 2020 | Sep 3, 2020 | May 28, 2020 | Feb 27, 2020 | Nov 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 198.18 | 231.88 | 182.19 | 166.65 | 169.73 | 172.26 | 201.28 | 222.73 | 142.76 | 182.25 | 169.63 | 158.24 | 116.98 | 150.57 | 151.86 | 185.13 | 135.70 | 136.01 | 131.72 | 135.07 |
The cash conversion cycle for Micron Technology Inc fluctuated over the historical period analyzed. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle for Micron Technology Inc ranged from 116.98 days to 231.88 days, indicating the company's ability to manage its working capital efficiency over time. A lower cash conversion cycle is generally favorable as it implies that the company is able to collect cash from sales faster and manage its inventory effectively.
The significant variations in the cash conversion cycle suggest potential changes in the company's operational efficiency, financial management, and effectiveness in managing its cash flow and working capital. It is crucial for companies to monitor and analyze their cash conversion cycle regularly to streamline operations and improve overall financial performance.