Synnex Corporation (SNX)

Current ratio

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019	Feb 28, 2019
Total current assets	US$ in thousands	18,580,700	20,084,400	19,168,500	19,965,200	20,500,900	19,882,500	18,535,400	18,948,900	17,734,100	9,603,420	7,239,760	6,804,610	8,769,130	8,564,150	7,968,620	6,947,460	7,452,990	7,202,490	7,015,120	6,429,150
Total current liabilities	US$ in thousands	15,254,900	16,738,800	15,532,000	15,790,600	16,428,700	15,930,900	14,659,700	15,207,000	14,233,500	4,007,390	4,270,330	3,968,310	5,630,090	5,632,150	5,229,300	4,227,150	4,607,120	4,578,680	4,461,220	3,880,480
Current ratio		1.22	1.20	1.23	1.26	1.25	1.25	1.26	1.25	1.25	2.40	1.70	1.71	1.56	1.52	1.52	1.64	1.62	1.57	1.57	1.66

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $18,580,700K ÷ $15,254,900K
= 1.22

Synnex Corporation's current ratio has exhibited some fluctuations over the past few years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

The current ratio has generally been above 1, indicating that Synnex has had more current assets than current liabilities, which is typically seen as a positive sign. However, it is important to note that a current ratio significantly above 1 may suggest an excessively high level of current assets relative to current liabilities, which could signify inefficient asset utilization.

Over the past two years, the current ratio has ranged between 1.20 and 1.26, showing relatively stable liquidity position during that period. The current ratio experienced a significant jump to 2.40 in the third quarter of 2021 before returning to more normal levels, suggesting a potential one-time event or anomaly that impacted the company's liquidity position.

It would be advisable for Synnex Corporation to further analyze its current asset and current liability composition to ensure efficient working capital management and to maintain a healthy liquidity position.