OSI Systems Inc (OSIS)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	95,353	76,800	64,202	80,613	76,102
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	814,637	571,694	613,954	344,767	330,101
Cash ratio		0.12	0.13	0.10	0.23	0.23

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($95,353K + $—K) ÷ $814,637K
= 0.12

The cash ratio of OSI Systems Inc has fluctuated over the past five years. The ratio was at its highest in June 2021 and June 2020, standing at 0.23, indicating that the company had 23 cents of cash for every dollar of current liabilities during those periods. However, there was a notable decrease in the cash ratio in June 2022 to 0.10, implying that the company had only 10 cents of cash for every dollar of current liabilities at that time.

Subsequently, the cash ratio slightly improved in June 2023 to 0.13 but decreased again to 0.12 in June 2024. This downward trend in the cash ratio over the past two years suggests that OSI Systems Inc may be experiencing some challenges in maintaining sufficient cash reserves relative to its short-term obligations.

Overall, a declining cash ratio could indicate potential liquidity concerns for the company, as it has less cash available to cover its immediate liabilities. Further analysis of OSI Systems Inc's cash flow management and liquidity position would be necessary to understand the reasons behind these fluctuations in the cash ratio and their implications for the company's financial health and sustainability.