Synaptics Incorporated (SYNA)

Cash ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	876,900	828,100	846,100	801,300	924,700	898,000	818,800	867,800	824,000	690,300	502,800	347,300	836,300	756,200	309,900	180,200	763,400	472,100	424,800	350,800
Short-term investments	US$ in thousands	0	500	2,600	23,100	9,600	35,900	40,100	44,000	52,000	64,600	71,100	—	0	—	7,000	63,700	—	—	—	—
Total current liabilities	US$ in thousands	277,200	210,900	253,300	245,500	260,100	268,900	299,300	365,300	463,400	393,000	365,200	303,500	786,700	276,100	225,500	257,500	244,100	239,200	239,500	247,500
Cash ratio		3.16	3.93	3.35	3.36	3.59	3.47	2.87	2.50	1.89	1.92	1.57	1.14	1.06	2.74	1.41	0.95	3.13	1.97	1.77	1.42

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($876,900K + $0K) ÷ $277,200K
= 3.16

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 immediate obligations without relying on external sources of funds.

In the case of Synaptics Incorporated, the cash ratio has exhibited fluctuations over the past several quarters. The ratio has ranged from a low of 0.95 to a high of 3.93, with an average around 2.5. This suggests that the company has generally maintained a healthy level of liquidity to cover its short-term liabilities.

The trend in the cash ratio shows some variability, with periods of increase followed by declines. However, the ratio has generally remained above 1, indicating that the company has had more than enough cash on hand to cover its short-term obligations.

Overall, Synaptics Incorporated has shown a consistent ability to manage its short-term liquidity position, as evidenced by its cash ratio remaining at relatively healthy levels. Investors and analysts may view this positively as it suggests that the company is well-equipped to handle unexpected expenses or economic downturns without resorting to external financing.