Varex Imaging Corp (VREX)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 152,600 | 89,400 | 144,600 | 100,600 | 29,900 |
| Short-term investments | US$ in thousands | 41,300 | 14,500 | — | 51,000 | — |
| Total current liabilities | US$ in thousands | 162,800 | 173,100 | 166,600 | 160,600 | 175,100 |
| Cash ratio | 1.19 | 0.60 | 0.87 | 0.94 | 0.17 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($152,600K
+ $41,300K)
÷ $162,800K
= 1.19
The cash ratio of Varex Imaging Corp has shown a fluctuating trend over the past five years. The ratio has been improving gradually from 0.17 in 2019 to 1.19 in 2023. This indicates that the company has significantly increased its ability to cover its short-term liabilities with cash and cash equivalents. However, it is important to note that a cash ratio of 1.19 means that Varex Imaging Corp has more than enough cash to cover its current liabilities, which may suggest that the company could potentially be holding excess cash that could be utilized more effectively elsewhere in the business. Overall, the increasing trend in the cash ratio reflects a positive liquidity position for the company and may signify improved financial health and stability.
Peer comparison
Sep 30, 2023