SanDisk Corp (SNDK)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
March 31, 2016 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,271,930K
+ $1,249,370K
+ $—K)
÷ $3,692,610K
= 1.22
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing the historical quick ratio of SanDisk Corp from June 2011 to March 2016, we observe fluctuations in the metric over time. The quick ratio ranged from a high of 2.97 in December 2011 to a low of 0.87 in June 2015.
Generally, a quick ratio above 1 is considered healthy, as it signifies that SanDisk Corp had sufficient liquid assets to meet its short-term obligations during the examined period. However, a decreasing trend in the quick ratio, as observed in the later periods from December 2014 to March 2016, could indicate potential liquidity challenges or a decrease in the company's ability to quickly cover its short-term liabilities.
Overall, the quick ratio of SanDisk Corp fluctuated over the years, highlighting the importance of closely monitoring liquidity levels to ensure the company's financial health and ability to meet its short-term obligations.