ScanSource Inc (SCSC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 185,460 | 36,178 | 37,987 | 62,718 | 29,485 |
| Short-term investments | US$ in thousands | — | 4,687 | 1,686 | — | — |
| Total current liabilities | US$ in thousands | 669,352 | 786,801 | 814,264 | 732,939 | 719,007 |
| Cash ratio | 0.28 | 0.05 | 0.05 | 0.09 | 0.04 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($185,460K
+ $—K)
÷ $669,352K
= 0.28
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
ScanSource Inc's cash ratio has shown variability over the past five years. In the fiscal year ending June 30, 2024, the cash ratio improved significantly to 0.28 compared to previous years. This indicates that the company had $0.28 in cash and cash equivalents for every $1 of current liabilities, showing a better liquidity position.
In contrast, the cash ratio was lower in the previous years, with values ranging from 0.04 to 0.09. This indicates that ScanSource Inc had a lower proportion of cash to cover its short-term obligations during those years.
Overall, the recent increase in the cash ratio for ScanSource Inc suggests an improvement in its liquidity position and ability to meet short-term liabilities using available cash resources. However, it is important to monitor this ratio consistently to ensure the company maintains sufficient liquidity for its operational needs.
Peer comparison
Jun 30, 2024