Plexus Corp (PLXS)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	256,233	274,805	270,172	385,807	223,761
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,812,670	2,006,190	1,128,700	1,003,520	865,503
Cash ratio		0.14	0.14	0.24	0.38	0.26

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($256,233K + $—K) ÷ $1,812,670K
= 0.14

The cash ratio of Plexus Corp. has exhibited a declining trend over the past five years, decreasing from 0.40 in September 2019 to 0.25 in September 2023. This indicates a reduction in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. The cash ratio of 0.25 in September 2023 suggests that for every dollar of current liabilities, Plexus Corp. has $0.25 in cash and cash equivalents, signifying a relatively lower liquidity position compared to previous years. It is essential for the company to closely monitor its cash management strategies to ensure sufficient liquidity to meet its short-term obligations.