Photronics Inc (PLAB)

Cash ratio

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Cash and cash equivalents	US$ in thousands	598,485	537,331	493,905	508,518	499,292	448,479	367,485	334,792	319,680	380,833	329,282	314,195	276,670	283,249	255,965	278,539	278,665	260,597	237,790	218,309
Short-term investments	US$ in thousands	42,184	69,046	65,955	12,996	12,915	27,325	45,431	39,199	38,820	—	—	—	0	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	183,811	191,126	195,567	185,289	185,223	190,652	185,168	199,331	193,797	197,114	186,471	191,094	176,148	167,617	159,287	145,531	142,939	175,309	153,372	157,654
Cash ratio		3.49	3.17	2.86	2.81	2.77	2.50	2.23	1.88	1.85	1.93	1.77	1.64	1.57	1.69	1.61	1.91	1.95	1.49	1.55	1.38

October 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($598,485K + $42,184K) ÷ $183,811K
= 3.49

The cash ratio of Photronics Inc has shown a generally positive trend over the time period analyzed. The cash ratio measures a company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

From Feb 2020 to Oct 2024, Photronics Inc's cash ratio has consistently increased, indicating an improvement in its ability to cover its short-term obligations with cash. The ratio has fluctuated between 1.38 and 3.49 during this period.

The highest cash ratio of 3.49 was recorded in Oct 24, showing a significant increase in cash reserves compared to the earlier periods. This suggests that the company had a strong ability to meet its short-term obligations with cash on hand.

On the other hand, the lowest cash ratio of 1.38 was observed in Feb 20, indicating relatively lower cash reserves compared to its short-term liabilities. However, the company has since improved its liquidity position over subsequent quarters.

Overall, the increasing trend in Photronics Inc's cash ratio reflects a positive liquidity position, indicating the company's ability to meet its short-term financial obligations comfortably. It suggests that the company has been managing its cash efficiently and may have adequate reserves to weather any unforeseen financial challenges in the short term.