Semtech Corporation (SMTC)

Cash ratio

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Jan 28, 2024 Oct 31, 2023 Oct 29, 2023 Jul 31, 2023 Jul 30, 2023 Apr 30, 2023 Jan 31, 2023 Jan 29, 2023 Oct 31, 2022 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Apr 30, 2022 Jan 31, 2022 Jan 30, 2022
Cash and cash equivalents US$ in thousands 151,700 136,504 115,928 126,777 128,585 128,585 123,820 123,820 147,912 147,912 164,198 235,510 235,510 617,801 617,801 362,150 275,184 275,184 279,601 279,601
Short-term investments US$ in thousands 12,716 — 12,294 12,092 14,545 14,545 12,725 12,725 12,870 12,870 12,803 12,557 12,557 1,025 1,025 11,766 11,544 11,544 12,872 12,402
Total current liabilities US$ in thousands 283,000 235,491 224,673 224,891 217,156 217,156 238,997 238,997 321,057 321,057 309,756 396,855 396,855 140,093 140,093 140,129 110,416 110,416 128,399 128,399
Cash ratio 0.58 0.58 0.57 0.62 0.66 0.66 0.57 0.57 0.50 0.50 0.57 0.63 0.63 4.42 4.42 2.67 2.60 2.60 2.28 2.27

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($151,700K + $12,716K) ÷ $283,000K
= 0.58

The cash ratio of Semtech Corporation has shown fluctuations over the period under review. Starting at 2.27 in January 2022, the ratio slightly increased to 2.28 by the end of January 2022. Thereafter, the ratio steadily rose to 4.42 in October 2022, indicating a significant improvement in the company's ability to cover its current liabilities with its cash and cash equivalents. However, the ratio sharply declined to 0.63 by January 2023, suggesting a potential liquidity concern. This low ratio was sustained through April and July 2023. There was a slight increase to 0.66 by January 2024, followed by a decrease to 0.57 in July 2024. The ratio subsequently fluctuated slightly around the 0.57-0.58 range until January 2025. Overall, the cash ratio trend indicates periods of strong liquidity coverage followed by periods of potential liquidity challenges for Semtech Corporation.