Sanmina Corporation (SANM)

Quick 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	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	—	—
Receivables	US$ in thousands	-8,000	-8,000	-8,000	—	-8,000	-8,000	—	—	—	-7,000	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		0.34	0.32	0.30	0.32	0.28	0.21	0.20	0.24	0.30	0.36	0.39	0.41	0.35	0.32	0.52	0.52	0.28	0.27	0.23	0.17

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($631,590K + $—K + $-8,000K) ÷ $1,822,120K
= 0.34

The quick ratio of Sanmina Corporation has shown some fluctuation over the past few quarters. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.

In the latest quarter, as of December 31, 2023, the quick ratio stood at 0.34, indicating that Sanmina had $0.34 in liquid assets available to cover each $1 of current liabilities. This ratio has improved from the previous quarter but remains relatively low compared to historical levels.

Over the past five quarters, the quick ratio has generally been below 0.3, reflecting a potential liquidity challenge for the company. The quick ratio spiked in the second quarter of 2021 and has shown some variability since then.

It is crucial for Sanmina to monitor and manage its liquidity position effectively to ensure it can meet its short-term obligations. A low quick ratio may suggest a reliance on inventory or accounts receivable to meet short-term debts, which could indicate inefficiencies in managing working capital. Management should assess the sustainability of the current liquidity levels and take appropriate actions to improve the company's ability to meet its financial obligations in the short term.