Sanmina Corporation (SANM)

Current 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
Total current assets	US$ in thousands	3,630,260	3,879,570	3,953,020	4,034,960	727,314	3,890,620	3,835,980	3,747,150	3,587,200	3,271,400	3,065,830	2,845,950	2,842,880	2,819,440	3,500,110	3,363,300	2,805,240	2,920,930	3,001,640	3,175,090
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
Current ratio		1.99	1.91	1.83	1.79	0.28	1.57	1.56	1.63	1.71	1.86	1.93	2.01	1.93	1.85	1.58	1.58	1.83	1.74	1.64	1.31

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,630,260K ÷ $1,822,120K
= 1.99

The current ratio of Sanmina Corporation has exhibited significant fluctuations over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its current assets.

The data shows a notable improvement in the current ratio from the end of 2019 to the first quarter of 2020, signaling a strengthening liquidity position during that period. However, this improvement was followed by a sharp decline at the end of 2020, where the current ratio dropped to a concerning level of 0.28. Such a low ratio indicates potential liquidity constraints and an inability to meet short-term obligations with current assets.

Subsequently, there has been a steady recovery in the current ratio from 2021 onwards, reaching a peak of 2.01 in the first quarter of 2022, reflecting improved liquidity management and ability to cover short-term liabilities more effectively. However, the ratio started to decline again in the following quarters, showing some fluctuation but generally staying above 1.50.

It is essential for Sanmina Corporation to monitor its current ratio closely to ensure that it maintains a healthy balance between current assets and current liabilities, as a low current ratio can signal financial distress and difficulties in meeting short-term obligations.