Smart Global Holdings Inc (SGH)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	169,718	170,590	219,247	243,571	229,474	306,323	410,323	371,514	399,982	344,107	327,450	278,260	206,607	215,377	227,587	220,507	240,648	229,238	238,091	—
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
Quick ratio		2.37	1.96	1.43	1.68	1.44	1.14	1.40	1.45	1.43	1.08	0.94	0.95	1.07	1.34	1.17	1.31	1.17	1.38	1.57	0.29

March 1, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($442,329K + $23,439K + $169,718K) ÷ $267,959K
= 2.37

The quick ratio of Smart Global Holdings Inc has shown fluctuations over the past few quarters. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

From the data provided, we can observe that the quick ratio has generally been above 1, indicating that Smart Global Holdings Inc has had a healthy liquidity position. In particular, the quick ratio has shown an increasing trend from May 2019 to March 2024, with some fluctuations along the way.

The quick ratio reached its peak at 2.37 on March 1, 2024, suggesting a strong ability to meet short-term obligations with liquid assets. On the other hand, the lowest quick ratio was observed on March 1, 2019, at 0.29, indicating a potential liquidity concern at that time.

Overall, the upward trend in the quick ratio over the past few quarters reflects an improvement in Smart Global Holdings Inc's liquidity position, which is a positive indicator for the company's short-term financial health.