SanDisk Corp (SNDK)
Cash ratio
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,271,930 | 1,478,950 | 698,073 | 685,790 | 649,940 | 809,003 | 930,835 | 885,115 | 1,116,940 | 986,246 | 902,765 | 1,054,130 | 1,148,110 | 995,470 | 1,110,480 | 1,070,450 | 1,093,260 | 829,149 | 1,074,850 | 974,854 |
| Short-term investments | US$ in thousands | 1,249,370 | 2,527,240 | 1,000,620 | 1,078,220 | 1,347,540 | 1,455,510 | 1,370,260 | 1,794,360 | 1,692,800 | 1,919,610 | 1,142,620 | 1,533,900 | 2,162,070 | 1,880,030 | 1,485,580 | 1,468,210 | 1,575,340 | 2,018,560 | 1,478,700 | 1,719,350 |
| Total current liabilities | US$ in thousands | 3,692,610 | 2,003,480 | 1,139,010 | 2,037,060 | 2,090,680 | 2,190,880 | 2,214,950 | 1,956,780 | 1,878,400 | 1,230,580 | 1,192,650 | 1,107,980 | 1,873,090 | 1,881,670 | 1,896,910 | 1,824,400 | 904,131 | 960,107 | 1,142,380 | 1,026,700 |
| Cash ratio | 1.22 | 2.00 | 1.49 | 0.87 | 0.96 | 1.03 | 1.04 | 1.37 | 1.50 | 2.36 | 1.71 | 2.34 | 1.77 | 1.53 | 1.37 | 1.39 | 2.95 | 2.97 | 2.24 | 2.62 |
March 31, 2016 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,271,930K
+ $1,249,370K)
÷ $3,692,610K
= 1.22
The cash ratio of SanDisk Corp has fluctuated over the period from June 30, 2011, to March 31, 2016, ranging from a high of 2.97 to a low of 0.87.
The trend shows that the cash ratio initially increased from June 30, 2011, to December 31, 2011, indicating a strengthening liquidity position. However, from June 30, 2012, to December 31, 2014, there was a decreasing trend in the cash ratio, reflecting potential challenges in maintaining high levels of cash compared to current liabilities.
From December 31, 2014, to December 31, 2015, there was a slight recovery in the cash ratio, suggesting an improvement in the company's ability to cover its short-term obligations with cash on hand. However, the ratio decreased again by March 31, 2016, indicating a possible strain on liquidity.
Overall, a high cash ratio indicates a strong ability to cover short-term obligations with available cash, while a low ratio may suggest potential liquidity issues. The management of SanDisk Corp may need to closely monitor its cash position to ensure sufficient liquidity to meet its short-term financial commitments.