Smart Global Holdings Inc (SGH)

Current 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
Total current assets	US$ in thousands	884,730	986,848	907,402	938,911	978,170	1,121,910	1,151,860	1,167,570	1,131,720	943,837	950,818	806,245	578,827	558,523	567,106	549,907	532,328	472,260	520,144	621,414
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
Current ratio		3.30	2.68	2.13	2.44	2.33	2.03	2.23	2.22	2.12	1.76	1.63	1.64	1.79	1.98	1.85	1.98	1.77	1.99	2.24	1.92

March 1, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $884,730K ÷ $267,959K
= 3.30

The current ratio of Smart Global Holdings Inc has shown fluctuation over the past several quarters. As of March 1, 2024, the current ratio stands at 3.30, indicating that the company has $3.30 in current assets for every $1 in current liabilities. This is a positive sign as it suggests that Smart Global Holdings Inc has a strong ability to meet its short-term obligations.

The trend in the current ratio has generally been positive, with occasional fluctuations. The ratio has shown improvement since the first quarter of 2021 when it was at 1.79, reaching a peak in the current period. This indicates that the company has been managing its current assets and liabilities effectively over time.

It is important to note that while a high current ratio suggests good liquidity and financial health, an excessively high ratio may indicate that the company is not efficiently utilizing its current assets. Conversely, a low current ratio may signal liquidity issues and difficulties in meeting short-term obligations.

Overall, the current ratio of Smart Global Holdings Inc has shown a favorable trend, indicating a strong ability to cover short-term liabilities with current assets. However, further analysis of the company's financial health and operational efficiency would provide a more comprehensive view of its overall financial performance.