OSI Systems Inc (OSIS)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	106,405	95,353	76,750	64,202	80,613
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	696,938	814,637	571,694	613,954	344,767
Cash ratio		0.15	0.12	0.13	0.10	0.23

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($106,405K + $—K) ÷ $696,938K
= 0.15

The cash ratio of OSI Systems Inc has exhibited fluctuations over the observed period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the cash ratio was 0.23, indicating that the company held cash and cash equivalents sufficient to cover approximately 23% of its current liabilities. By June 30, 2022, this ratio significantly declined to 0.10, suggesting a reduction in the company's liquidity position relative to its short-term obligations.

From 2022 onwards, the cash ratio experienced a modest increase, reaching 0.13 by June 30, 2023, followed by a slight decrease to 0.12 in 2024. The ratio then rose again to 0.15 as of June 30, 2025. These changes reflect a relatively stable but modest level of liquidity in terms of cash and cash equivalents relative to current liabilities, with ratios consistently below 0.25 throughout the period.

Overall, the trend indicates a reduction in the company's liquidity cushion from 2021 to 2022, with subsequent periods showing slight improvements. The persistent low cash ratio suggests that OSI Systems Inc relies more heavily on other current assets or operational cash flows to meet its short-term obligations, rather than holding significant cash reserves. These dynamics should be viewed within the context of the company's overall liquidity and liquidity management strategies, emphasizing the importance of other liquidity ratios and cash flow metrics for a comprehensive assessment.