Sanmina Corporation (SANM)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 625,860 | 667,570 | 529,857 | 650,026 | 480,526 |
| Short-term investments | US$ in thousands | — | 6,000 | — | — | — |
| Receivables | US$ in thousands | -7,000 | -8,000 | -8,000 | -7,000 | -8,570 |
| Total current liabilities | US$ in thousands | 1,940,680 | 2,033,330 | 2,471,420 | 1,762,990 | 1,522,590 |
| Quick ratio | 0.32 | 0.33 | 0.21 | 0.36 | 0.31 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($625,860K
+ $—K
+ $-7,000K)
÷ $1,940,680K
= 0.32
The quick ratio of Sanmina Corporation has shown fluctuations over the past five years. In 2024, the quick ratio decreased to 0.32 from 0.33 in 2023, indicating a slight decline in the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio was relatively low in 2022 at 0.21, suggesting the company may have had difficulties in covering its current liabilities with its quick assets during that period.
However, the quick ratio improved in 2023 compared to 2022, and in 2021 at 0.36, reflecting a better position to fulfill short-term obligations with liquid assets. In 2020, the quick ratio was 0.31, similar to the 2024 figure, suggesting stability in this aspect of Sanmina's financial position over the two years.
Overall, the trend in the quick ratio indicates that Sanmina Corporation has had varying degrees of liquidity in recent years, with fluctuations seen in its ability to promptly cover its short-term liabilities with its quick assets. It is essential for the company to continue monitoring and managing its liquidity position to ensure it can meet its financial obligations efficiently.
Peer comparison
Sep 30, 2024