OSI Systems Inc (OSIS)

Cash ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	106,405	95,830	101,633	85,053	95,353	101,443	127,258	82,591	76,750	65,622	45,600	53,990	64,202	83,279	86,332	54,663	80,613	92,465	72,575	76,925
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	696,938	603,957	703,718	712,536	814,637	761,682	700,391	611,628	571,694	550,413	538,242	562,481	613,954	645,836	694,455	656,788	344,767	326,069	333,393	333,937
Cash ratio		0.15	0.16	0.14	0.12	0.12	0.13	0.18	0.14	0.13	0.12	0.08	0.10	0.10	0.13	0.12	0.08	0.23	0.28	0.22	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. over the analyzed period exhibits fluctuation within a relatively narrow range, indicating a generally conservative approach to liquidity management. Beginning at approximately 0.23 as of September 30, 2020, the ratio remained fairly stable through the end of 2020, slightly decreasing to 0.22 by December 31, 2020. In early 2021, the ratio experienced a marginal increase, reaching 0.28 as of March 31, 2021. However, this uptick was temporary, with subsequent values stabilizing around 0.23 by June 30, 2021.

A notable decline is observed in September 2021, when the cash ratio sharply dropped to 0.08, representing a significant decrease in immediate liquidity relative to current liabilities. The ratio then partially recovered to 0.12 by the end of that year and subtly increased to approximately 0.13 by March 31, 2022. The subsequent quarters show a slight decline and stabilization; for example, the ratio fell to 0.10 by June 30, 2022, and remained at that level through September 2022. By the end of 2022, it returned to 0.08, indicating ongoing conservative liquidity positioning.

In 2023, the ratio generally trended upward, reaching 0.12 by March 31 and 0.13 by June 30, before increasing further to 0.14 in September. The pattern continues into 2024, with the ratio rising to 0.18 by the year's end, reflecting a modest improvement in liquidity. The first quarter of 2025 shows a continued moderate increase to 0.16, with the ratio maintaining around 0.15–0.16 thereafter.

Overall, the company's cash ratio has consistently remained below 0.20 for most of the period, with occasional brief increases above that level. The range, typically between 0.08 and 0.28, indicates that OSI Systems Inc. holds a relatively modest proportion of cash and cash equivalents relative to its current liabilities. The fluctuations suggest a strategic management of liquidity, balancing cash holdings with operational needs, and indicating a cautious approach during times of financial stress or changing market conditions. The gradual upward trend from late 2022 into 2024 may reflect improved liquidity management or shifts in operational cash flows.