SanDisk Corp (SNDK)
Quick ratio
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,003,480 | 2,190,880 | 1,230,580 | 1,881,670 | 1,093,370 |
| Quick ratio | 2.00 | 1.03 | 2.36 | 1.53 | 2.61 |
December 31, 2015 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,478,950K
+ $2,527,240K
+ $—K)
÷ $2,003,480K
= 2.00
Based on the provided data, SanDisk Corp's quick ratio has exhibited fluctuating trends over the years. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was at a healthy level of 2.61 as of December 31, 2011. However, it declined to 1.53 by December 31, 2012, indicating a potential decrease in the company's short-term liquidity.
The quick ratio improved significantly to 2.36 by December 31, 2013, suggesting a better ability to cover immediate liabilities with liquid assets. Subsequently, there was a notable decrease in the quick ratio to 1.03 by December 31, 2014, potentially signaling a weakening liquidity position.
By the end of December 31, 2015, the quick ratio recovered to 2.00, indicating an improvement in the company's short-term liquidity position compared to the previous year. Overall, fluctuations in the quick ratio over the years suggest varying levels of liquidity management by SanDisk Corp, which may warrant further investigation to understand the underlying reasons for these changes.
Peer comparison
Dec 31, 2015