SanDisk Corp (SNDK)

Liquidity ratios

	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
Current ratio	1.67	2.82	3.17	1.80	1.80	1.92	1.97	2.36	2.40	3.78	3.31	3.88	2.59	2.31	2.28	2.27	4.52	4.20	3.48	3.81
Quick 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
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

SanDisk Corp's liquidity ratios provide insights into the company's ability to meet its short-term obligations. The current ratio has shown fluctuations over the years, ranging from a high of 4.52 in March 2012 to a low of 1.67 in March 2016. This ratio indicates that the company had more than enough current assets to cover its current liabilities in most periods, although there was a significant decline in liquidity toward the end of the period.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, followed a similar trend. It ranged from a high of 2.97 in December 2011 to a low of 0.87 in June 2015. This ratio suggests that the company had a relatively strong ability to meet its short-term obligations without relying on selling inventory, although it also experienced a decrease in liquidity over the years.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, mirrored the patterns seen in the quick ratio. It ranged from a high of 2.97 in December 2011 to a low of 0.87 in June 2015. This ratio signals the company's capability to settle its current liabilities using only its cash reserves, indicating a declining trend in liquidity towards the later periods.

Overall, while SanDisk Corp maintained good liquidity ratios for the most part of the period, there was a noticeable decline in liquidity from 2014 to 2016, especially in the quick ratio and cash ratio. This decline suggests a potential risk in the company's ability to meet its short-term obligations solely from its current assets, requiring a closer examination of the company's cash management and working capital practices.

Additional liquidity measure

		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 conversion cycle	days	96.20	89.31	84.68	82.25	72.57	71.57	83.11	84.14	93.55	88.93	90.95	82.57	84.53	86.51	98.57	102.11	89.88	61.11	87.03	75.80

The cash conversion cycle of SanDisk Corp fluctuated over the period from June 30, 2011, to March 31, 2016. The company's cash conversion cycle measures the time it takes for SanDisk to convert its investments in inventory and other resources into cash flows from sales.

The trend of the cash conversion cycle shows varying efficiency in managing working capital. Generally, a shorter cash conversion cycle is favorable as it indicates that the company is able to quickly convert its investment in inventory into cash. Conversely, a longer cash conversion cycle may imply inefficiencies in the management of working capital.

Analyzing the data, we observe that the cash conversion cycle ranged from a low of 61.11 days on December 31, 2011, to a high of 102.11 days on June 30, 2012. The cycle decreased to 71.57 days on December 31, 2014, indicating improved efficiency in managing working capital. However, it increased again to 96.20 days by March 31, 2016, suggesting potential challenges in converting investment in inventory into cash during that period.

It is important for SanDisk Corp to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources, efficient working capital management, and sustained cash flows from sales operations.