SanDisk Corp (SNDK)
Cash ratio
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,478,950 | 809,003 | 986,246 | 995,470 | 1,167,500 |
| Short-term investments | US$ in thousands | 2,527,240 | 1,455,510 | 1,919,610 | 1,880,030 | 1,681,490 |
| Total current liabilities | US$ in thousands | 2,003,480 | 2,190,880 | 1,230,580 | 1,881,670 | 1,093,370 |
| Cash ratio | 2.00 | 1.03 | 2.36 | 1.53 | 2.61 |
December 31, 2015 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,478,950K
+ $2,527,240K)
÷ $2,003,480K
= 2.00
The cash ratio of SanDisk Corp has exhibited fluctuations over the years based on the provided data. In 2011, the company had a healthy cash ratio of 2.61, indicating that it had sufficient cash and cash equivalents to cover its current liabilities. The ratio decreased to 1.53 in 2012, suggesting a slight decline in the company's ability to meet short-term obligations solely with cash reserves.
There was a rebound in the cash ratio in 2013, reaching 2.36, which indicated an improvement in the company's liquidity position. However, the ratio dropped significantly to 1.03 in 2014, signaling a potential liquidity concern as the company may have had difficulty meeting immediate financial obligations solely with available cash.
In 2015, the cash ratio increased again to 2.00, reflecting a better liquidity position compared to the previous year but remaining below the levels seen in 2011 and 2013. Overall, the fluctuating cash ratio of SanDisk Corp indicates varying levels of liquidity risk and highlights the importance of monitoring the company's ability to meet its short-term liabilities with its cash resources.
Peer comparison
Dec 31, 2015