OSI Systems Inc (OSIS)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	1,422,860	1,215,520	839,903	746,144	709,404
Total current liabilities	US$ in thousands	696,938	814,637	571,694	613,954	344,767
Current ratio		2.04	1.49	1.47	1.22	2.06

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,422,860K ÷ $696,938K
= 2.04

The analysis of OSI Systems Inc.'s current ratio over the specified periods indicates notable fluctuations that reflect changes in the company's short-term liquidity position. As of June 30, 2021, the current ratio was measured at 2.06, suggesting a strong ability to cover current liabilities with current assets. This ratio declined significantly in the subsequent year to 1.22 by June 30, 2022, indicating a reduction in liquidity and potentially increased liquidity risk.

Between 2022 and 2023, the current ratio experienced a modest recovery, rising to 1.47, which suggests an improvement in the company's capacity to meet short-term obligations, though it remains below the 2021 peak. The ratio further increased slightly to 1.49 as of June 30, 2024, indicating stabilization of liquidity positions and a gradual strengthening of current asset coverage.

By June 30, 2025, the current ratio increased substantially again to 2.04, nearly returning to the high liquidity levels observed in 2021. This rebound suggests an improved liquidity posture, potentially driven by strategic adjustments in asset management or liability structure.

Overall, the trend underscores periods of liquidity contraction and subsequent recovery, with the company ultimately restoring a robust short-term liquidity position by mid-2025. The current ratio, averaging above 1.0 in recent years and peaking near 2.0, signifies that OSI Systems Inc. maintains sufficient short-term assets relative to its current liabilities, aligning with effective liquidity management practices in the later years.