Sonos Inc (SONO)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 220,231 | 274,855 | 640,101 | 407,100 | 338,641 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 354,218 | 535,639 | 476,130 | 393,015 | 402,474 |
| Cash ratio | 0.62 | 0.51 | 1.34 | 1.04 | 0.84 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($220,231K
+ $—K)
÷ $354,218K
= 0.62
The cash ratio for Sonos Inc has shown some fluctuations over the past five years. As of September 30, 2023, the cash ratio stands at 0.69, indicating that the company has $0.69 of cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the prior year's ratio of 0.58, suggesting a slight deterioration in the company's short-term liquidity position.
Looking back, in October 2, 2021, Sonos Inc had a notably higher cash ratio of 1.41, signaling a stronger ability to cover its short-term obligations with its available cash and cash equivalents. This was followed by a ratio of 1.08 in October 3, 2020, and 0.89 in September 28, 2019, both of which also indicated a favourable liquidity position.
The fluctuation in the cash ratio over the years may reflect changes in the company's cash management, operating performance, and investment activities. It would be important for stakeholders to further examine the components of the cash ratio and consider the reasons behind the fluctuations to gain a comprehensive understanding of Sonos Inc's liquidity position.
Peer comparison
Sep 30, 2023