Seagate Technology PLC (STX)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,332,000 | 2,905,000 | 4,033,000 | 3,779,000 | 4,114,000 |
| Total current liabilities | US$ in thousands | 3,099,000 | 2,592,000 | 3,555,000 | 2,921,000 | 2,722,000 |
| Current ratio | 1.08 | 1.12 | 1.13 | 1.29 | 1.51 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,332,000K ÷ $3,099,000K
= 1.08
Seagate Technology PLC's current ratio has shown a declining trend over the past five years, decreasing from 1.51 in June 2020 to 1.08 in June 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities.
A current ratio of 1.08 in June 2024 suggests that Seagate may have a slightly lower liquidity position compared to the previous years. While the current ratio of 1.08 is still above 1, indicating that the company can cover its short-term liabilities, a declining trend raises concerns about the company's ability to meet its short-term obligations.
It is essential for investors and analysts to monitor Seagate's liquidity position closely to ensure that the company can effectively manage its short-term financial obligations. Additional analysis of other liquidity ratios and financial metrics would provide a more comprehensive view of Seagate's overall financial health.
Peer comparison
Jun 30, 2024