Sonos Inc (SONO)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 169,732 | 220,231 | 274,855 | 640,101 | 407,100 |
| Short-term investments | US$ in thousands | 51,426 | — | — | — | — |
| Total current liabilities | US$ in thousands | 366,153 | 354,218 | 535,639 | 476,130 | 393,015 |
| Cash ratio | 0.60 | 0.62 | 0.51 | 1.34 | 1.04 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($169,732K
+ $51,426K)
÷ $366,153K
= 0.60
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
Sonos Inc's cash ratio has fluctuated over the past five years. In September 2024, the cash ratio was 0.60, showing a decrease from the previous year's ratio of 0.62. This indicates that Sonos Inc has slightly less cash and cash equivalents relative to its short-term liabilities in 2024 compared to 2023.
Looking further back, the cash ratio was 0.51 in September 2022, which was lower than the ratios in the following years. This suggests that Sonos Inc had a weaker ability to cover its short-term obligations with cash at that time.
In September 2021, Sonos Inc's cash ratio was significantly higher at 1.34, indicating that the company had more than enough cash to cover its short-term liabilities. This strong ratio could be a result of prudent cash management or increased cash reserves.
Similarly, in September 2020, the cash ratio was 1.04, showing a healthy liquidity position for Sonos Inc at that time.
Overall, Sonos Inc's cash ratio has shown variability over the years, with fluctuations indicating changes in the company's liquidity position and ability to meet short-term obligations with its available cash and cash equivalents.
Peer comparison
Sep 30, 2024