Sanmina Corporation (SANM)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	667,570	529,857	650,026	480,526	454,741
Short-term investments	US$ in thousands	—	—	—	—	0
Total current liabilities	US$ in thousands	2,033,330	2,471,420	1,762,990	1,522,590	1,683,020
Cash ratio		0.33	0.21	0.37	0.32	0.27

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($667,570K + $—K) ÷ $2,033,330K
= 0.33

The cash ratio, which is a liquidity measure, indicates a company's ability to cover short-term liabilities with its cash and cash equivalents.

Looking at the data for Sanmina Corp, we see that the cash ratio has fluctuated over the past five years. In September 2023, the cash ratio stood at 0.58, showing an increase from the previous year's 0.45. This suggests an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend over the past five years reveals that the cash ratio was relatively stable between 2020 and 2021, with a value of 0.60. However, it increased slightly in 2023 and dropped in 2019. This may indicate fluctuations in the company's cash position and its ability to meet short-term obligations.

In general, the cash ratio indicates that Sanmina Corp has been able to maintain a reasonable level of cash and cash equivalents compared to its current liabilities over the past five years. It's important to continue monitoring this ratio, as an increasing trend may signify an improving liquidity position for the company.