Smart Global Holdings Inc (SGH)

Cash ratio

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Cash and cash equivalents	US$ in thousands	442,329	529,059	365,563	401,275	375,854	324,821	313,328	387,326	365,768	233,050	222,986	188,992	139,803	164,097	131,845	141,860	111,389	98,139	126,099	95,174
Short-term investments	US$ in thousands	23,439	24,385	25,251	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	267,959	368,804	426,250	384,305	420,447	551,807	515,540	524,896	533,804	535,119	583,798	492,218	323,024	282,568	306,260	277,227	299,975	237,900	232,665	324,018
Cash ratio		1.74	1.50	0.92	1.04	0.89	0.59	0.61	0.74	0.69	0.44	0.38	0.38	0.43	0.58	0.43	0.51	0.37	0.41	0.54	0.29

March 1, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($442,329K + $23,439K) ÷ $267,959K
= 1.74

The cash ratio of Smart Global Holdings Inc has shown fluctuations over the past few years, ranging from a low of 0.29 to a high of 1.74. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests that the company has a greater ability to meet its short-term obligations.

Looking at the trend of the cash ratio, we can see that there have been fluctuations in the company's ability to cover its short-term liabilities with cash over the years. The ratio peaked at 1.74 on Mar 1, 2024, indicating a strong ability to cover short-term obligations at that point in time. Conversely, the ratio hit a low of 0.29 on Mar 1, 2019, suggesting a weaker ability to cover short-term liabilities with cash at that time.

Overall, it is important for Smart Global Holdings Inc to monitor and maintain a healthy cash ratio to ensure its short-term liquidity and financial stability. Fluctuations in the cash ratio can indicate changes in the company's financial health and may require further analysis to understand the underlying reasons.