Sanmina Corporation (SANM)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	631,590	667,570	656,588	718,203	735,314	529,857	493,305	559,893	627,717	650,026	623,844	575,176	516,030	480,526	1,117,220	1,114,580	430,564	454,741	414,273	405,494
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	30,000	—	—	0	—	—
Total current liabilities	US$ in thousands	1,822,120	2,033,330	2,157,860	2,254,990	2,570,600	2,471,420	2,462,660	2,298,020	2,096,670	1,762,990	1,587,360	1,418,600	1,473,450	1,522,590	2,213,040	2,131,080	1,530,130	1,683,020	1,827,670	2,418,530
Cash ratio		0.35	0.33	0.30	0.32	0.29	0.21	0.20	0.24	0.30	0.37	0.39	0.41	0.35	0.32	0.52	0.52	0.28	0.27	0.23	0.17

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($631,590K + $—K) ÷ $1,822,120K
= 0.35

The cash ratio of Sanmina Corporation has fluctuated over the periods provided, ranging from a low of 0.17 to a high of 0.52. The cash ratio measures the company's ability to cover its short-term obligations using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and implies that the company has more cash on hand relative to its current liabilities.

From the data provided, we can see that the cash ratio has generally been above 0.2, with some periods showing a ratio exceeding 0.3 and even reaching 0.52 in certain quarters, indicating a relatively healthy liquidity position. However, there have been fluctuations in the ratio, suggesting variations in the company's ability to meet its short-term obligations solely through its cash reserves.

It would be important for stakeholders to closely monitor these fluctuations and assess the reasons behind the changes in the cash ratio to gain a better understanding of Sanmina Corporation's liquidity management and financial health.