Sonos Inc (SONO)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 659,631 | 867,391 | 957,514 | 660,377 | 679,109 |
| Total current liabilities | US$ in thousands | 354,218 | 535,639 | 476,130 | 393,015 | 402,474 |
| Current ratio | 1.86 | 1.62 | 2.01 | 1.68 | 1.69 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $659,631K ÷ $354,218K
= 1.86
The current ratio measures Sonos Inc's ability to cover its short-term liabilities with its short-term assets. Over the past five years, the company's current ratio has exhibited some fluctuation.
In 2023, the current ratio stands at 1.86, indicating an improvement from the prior year's 1.62. This suggests that Sonos Inc's short-term liquidity position has strengthened, as it now has $1.86 in current assets to cover every $1 of current liabilities.
Comparing to 2021, the current ratio of 2.01 was indicative of a robust short-term liquidity position, suggesting strong ability to meet short-term obligations. However, there was a decrease in 2022 to 1.62, potentially signaling some strain on the company's ability to cover short-term liabilities with its current assets.
In the context of the current ratio exceeding 1 in each year, Sonos Inc has consistently possessed more current assets than current liabilities, indicating a relatively healthy short-term liquidity position overall. However, management may want to ensure that the ratio remains at a level that enables flexibility in meeting short-term obligations.
Peer comparison
Sep 30, 2023