Sanmina Corporation (SANM)

Current ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	3,879,570	3,890,620	3,271,400	2,819,440	2,920,930
Total current liabilities	US$ in thousands	2,033,330	2,471,420	1,762,990	1,522,590	1,683,020
Current ratio		1.91	1.57	1.86	1.85	1.74

September 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,879,570K ÷ $2,033,330K
= 1.91

The current ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations using its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests good liquidity.

Looking at Sanmina Corp's current ratio over the past five years, we can observe the following trends:
- In September 2023, the current ratio improved significantly to 1.91 from 1.60 in October 2022. This indicates a strengthening of the company's ability to cover its short-term debts with its current assets.
- The current ratio was relatively stable in the two preceding years, standing at 1.86 in 2021 and 1.85 in 2020, indicating that the company consistently maintained a healthy liquidity position over this period.
- There was a slight increase in the current ratio in September 2019 to 1.74 from the previous year, indicating improved liquidity compared to October 2018.

Overall, the trend in Sanmina Corp's current ratio shows a positive movement, with the ratio generally increasing or remaining stable over the past five years. This suggests that the company has been effectively managing its current assets and liabilities to maintain a healthy liquidity position, which is a positive indicator for the company's short-term financial stability.