Semtech Corporation (SMTC)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Cash and cash equivalents	US$ in thousands	151,743	128,585	128,585	235,510	235,510
Short-term investments	US$ in thousands	12,716	14,545	14,545	12,557	12,557
Total current liabilities	US$ in thousands	283,034	217,156	217,156	396,855	396,855
Cash ratio		0.58	0.66	0.66	0.63	0.63

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($151,743K + $12,716K) ÷ $283,034K
= 0.58

The cash ratio of Semtech Corporation has shown consistency in the range of 0.63 to 0.66 over the years from January 29, 2023, to January 31, 2025. The cash ratio measures the company's ability to cover its short-term liabilities with its existing cash and cash equivalents.

A cash ratio of 0.63 to 0.66 indicates that Semtech has maintained a relatively stable level of cash and cash equivalents compared to its current liabilities during this period. This suggests that the company is able to meet its short-term financial obligations comfortably using its available cash resources.

However, it is important to note that the cash ratio alone may not provide a complete picture of the company's liquidity position. It is advisable to consider other liquidity ratios and factors in conjunction with the cash ratio to make a more comprehensive assessment of Semtech's overall liquidity and financial health.