Sandisk Corp (SNDK)
Liquidity ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.56 | 3.70 | 2.38 | 2.98 | 1.67 | — | — | — | 1.67 | 2.82 | 3.17 | 1.80 | 1.80 | 1.92 | 1.97 | 2.36 | 2.40 | 3.78 | 3.31 | 3.88 |
| Quick ratio | 1.83 | 1.85 | 0.92 | 0.92 | 0.59 | — | — | — | 1.22 | 2.00 | 1.49 | 0.87 | 0.96 | 1.03 | 1.04 | 1.37 | 1.50 | 2.36 | 1.71 | 2.34 |
| Cash ratio | 1.04 | 1.10 | 0.43 | 0.22 | 0.15 | — | — | — | 1.22 | 2.00 | 1.49 | 0.87 | 0.96 | 1.03 | 1.04 | 1.37 | 1.50 | 2.36 | 1.71 | 2.34 |
The liquidity position of Sandisk Corporation over the provided period demonstrates notable fluctuations across its key ratios: current ratio, quick ratio, and cash ratio, indicating variable short-term financial health.
Current Ratio Analysis:
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, generally remained above 1.8 throughout most of the period, suggesting adequate liquidity. Notably, it peaked at 3.88 on June 30, 2013, reflecting a strong liquidity buffer. Subsequently, the ratio experienced a decline, reaching lows of around 1.67 on March 31, 2016, suggesting a reduced ability to cover current liabilities solely with current assets. Post-2016, the current ratio exhibited some recovery, with figures approaching or surpassing 3.0 briefly in 2025, indicating improved short-term liquidity. The data for late 2023 and beyond is unavailable, precluding further analysis.
Quick Ratio Analysis:
The quick ratio, which excludes inventory from current assets to assess more liquid assets, mirrors the trend of the current ratio with initial high values—peaking at 2.36 in December 2013—and experiencing a decline to approximately 0.87 by June 2015. The ratio continued to fluctuate, dropping to as low as 0.59 in June 2024, signaling periods where liquid assets (excluding inventory) were less than current liabilities. Recovery periods can be observed, with the ratio rising to approximately 1.85 by March 2025, indicating enhanced immediate liquidity.
Cash Ratio Analysis:
The cash ratio, reflecting cash and cash equivalents against current liabilities, initially remained robust, reaching 2.36 in December 2013. It trended downward over time, reaching a low of 0.15 on June 30, 2024, suggesting that the company’s cash holdings were insufficient to cover short-term liabilities without converting other assets. However, a subsequent increase to 1.10 by March 2025 indicates a significant improvement in cash liquidity positioning.
Overall Interpretation:
The period examined reveals a pattern of initial strong liquidity levels, followed by a marked decline between 2014 and 2016, particularly in the quick and cash ratios, reflecting potential liquidity constraints or strategic changes in asset composition. The subsequent recovery trends, especially evident by 2025, suggest an improvement in liquidity management or operational performance. The fluctuations across the ratios highlight periods of tightened liquidity, but overall, the company's ability to meet short-term obligations has shown signs of stabilization and renewal, contingent on future asset management and cash flow strategies.
Additional liquidity measure
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 149.46 | 187.06 | 187.11 | 157.08 | 155.54 | 0.00 | 0.00 | 0.00 | 96.20 | 89.31 | 84.68 | 82.25 | 72.57 | 71.57 | 83.11 | 84.14 | 93.55 | 88.93 | 90.95 | 82.57 |
The data reveals that the cash conversion cycle (CCC) of Sandisk Corp experienced notable fluctuations over the analyzed periods. From June 30, 2013, through September 30, 2015, the CCC generally displayed a declining trend, decreasing from approximately 82.57 days to around 84.68 days, with a notable dip to 71.57 days by the end of 2014. This suggests an improvement in the company's efficiency in converting investments in inventory and receivables into cash, attributable to either shorter inventory holding periods, faster receivables collection, or both.
However, commencing in early 2016, the CCC increased significantly, reaching nearly 96.20 days by March 2016. Most notably, data from September 2023 through June 2025 indicates a period of zero days recorded, possibly reflecting reporting anomalies or a change in accounting practices. Post-2016, the CCC escalated sharply; by June 30, 2024, it rose to approximately 155.54 days, peaking further to about 187.11 days by December 2024. This substantial increase indicates a lengthening of the company’s overall cycle, potentially due to longer inventory holding periods, delays in receivables collection, or both.
Furthermore, the fluctuations during the 2013-2015 period suggest a relatively stable operational efficiency in managing working capital, whereas the periods from 2024 onward show significant inefficiencies or a deterioration in cash flow management, leading to extended cash conversion cycles.
The drastic rise and subsequent decline during the latest periods may also reflect extraordinary circumstances, strategic changes, or anomalies in reporting, which warrant further investigation. Overall, the trend indicates a period of relative operational stability in the earlier years, followed by a marked deterioration and increased liquidity strain in more recent periods.