Synnex Corporation (SNX)

Cash ratio

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Cash and cash equivalents	US$ in thousands	1,059,380	1,033,780	522,604	993,973	1,412,020
Short-term investments	US$ in thousands	—	—	17,222	—	152,656
Total current liabilities	US$ in thousands	17,221,200	16,738,800	16,428,700	14,233,500	5,630,090
Cash ratio		0.06	0.06	0.03	0.07	0.28

November 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,059,380K + $—K) ÷ $17,221,200K
= 0.06

The cash ratio of Synnex Corporation has shown a declining trend over the past five years. As of November 30, 2020, the cash ratio stood at 0.28, indicating that for every dollar of current liabilities, the company had $0.28 in cash or cash equivalents available. However, by November 30, 2021, the ratio had decreased to 0.07, suggesting a significant decrease in liquidity as the company had reduced cash reserves relative to its current liabilities.

The trend continued into the following years, with the cash ratio further declining to 0.03 on November 30, 2022, and then slightly improving to 0.06 for both November 30, 2023 and November 30, 2024. This indicates that though there was a slight improvement in liquidity over the last two years, the cash reserves of the company remain relatively low compared to its current liabilities.

Overall, the decreasing trend in the cash ratio of Synnex Corporation may raise concerns about its ability to cover short-term obligations solely with its available cash and cash equivalents. Further analysis of the company's cash management practices and liquidity position may be warranted to ensure its financial health and sustainability in the future.