Sandisk Corp (SNDK)

Cash ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Dec 31, 2015
Cash and cash equivalents US$ in thousands 1,481,000 328,000 292,000 335,000 1,478,950
Short-term investments US$ in thousands — — — — 2,527,240
Total current liabilities US$ in thousands 1,427,000 2,123,000 2,174,000 2,513,000 2,003,480
Cash ratio 1.04 0.15 0.13 0.13 2.00

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,481,000K + $—K) ÷ $1,427,000K
= 1.04

The cash ratio of Sandisk Corp has exhibited notable fluctuations over the specified periods. As of December 31, 2015, the cash ratio was notably high at 2.00, indicating that the company's cash and cash equivalents were twice its current liabilities, reflecting a very conservative liquidity stance at that time. This high ratio suggests a strong short-term liquidity position, with ample cash reserves to cover immediate obligations.

By June 30, 2022, the cash ratio declined substantially to 0.13, illustrating a significant reduction in the company's cash holdings relative to its current liabilities. This sharp decrease may imply a shift in liquidity strategy, increased deployment of cash into other assets, or a rise in current liabilities that outpaced cash asset growth. The ratio remained unchanged at 0.13 on June 30, 2023, indicating sustained liquidity levels and a stabilization of the company's cash position relative to its short-term obligations during that period.

Looking ahead, the cash ratio is projected to see a modest increase to 0.15 on June 30, 2024, suggesting a slight improvement in the company's liquidity position. This incremental rise could be indicative of efforts to bolster cash reserves or a reduction in current liabilities. The most notable change occurs with the projection for June 30, 2025, where the cash ratio is expected to rise sharply to 1.04. This indicates that Sandisk Corp is anticipated to enhance its cash holdings to almost match its current liabilities, reflecting a potential strategic shift towards strengthening liquidity and financial safety measures.

Overall, the trend reveals an initial significant decrease in the company's cash ratio from a highly conservative level in 2015 to lower levels in subsequent years, followed by a projected recovery in the coming years. This pattern suggests a transition in liquidity management strategies, with expectations of improved short-term liquidity positioning by 2025.