Plexus Corp (PLXS)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	345,109	256,233	274,805	270,172	385,807
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,643,290	1,812,670	2,006,190	1,128,700	1,003,520
Cash ratio		0.21	0.14	0.14	0.24	0.38

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($345,109K + $—K) ÷ $1,643,290K
= 0.21

The cash ratio of Plexus Corp has shown fluctuations over the past five years. In 2020, the cash ratio was relatively high at 0.38, indicating that the company had a significant amount of cash on hand to cover its short-term liabilities. However, the cash ratio decreased in the subsequent years to 0.24 in 2021, 0.14 in both 2022 and 2023, and then increased slightly to 0.21 in 2024.

A cash ratio of less than 1 suggests that Plexus Corp may not have enough liquid assets to cover its current liabilities, which could potentially signal liquidity issues. It is essential for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations promptly. Monitoring cash flow management and working capital efficiency are crucial aspects for Plexus Corp to address any liquidity concerns.