Varex Imaging Corp (VREX)
Cash ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 141,300 | 152,600 | 118,500 | 104,400 | 81,500 | 89,400 | 99,600 | 115,100 | 157,800 | 144,600 | 128,300 | 111,100 | 105,500 | 100,600 | 87,400 | 24,200 | 30,000 | 29,900 | 28,500 | 31,000 |
| Short-term investments | US$ in thousands | 52,200 | 41,300 | 33,500 | 13,700 | 16,700 | 14,500 | — | — | — | — | — | 49,000 | 49,000 | 51,000 | 50,000 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 150,100 | 162,800 | 158,600 | 157,200 | 157,400 | 173,100 | 172,300 | 167,100 | 149,900 | 166,600 | 186,200 | 146,300 | 152,500 | 160,600 | 191,900 | 198,100 | 190,900 | 175,100 | 171,200 | 156,300 |
| Cash ratio | 1.29 | 1.19 | 0.96 | 0.75 | 0.62 | 0.60 | 0.58 | 0.69 | 1.05 | 0.87 | 0.69 | 1.09 | 1.01 | 0.94 | 0.72 | 0.12 | 0.16 | 0.17 | 0.17 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($141,300K
+ $52,200K)
÷ $150,100K
= 1.29
The cash ratio of Varex Imaging Corp has shown fluctuations over the past few years, ranging from as low as 0.12 to as high as 1.29. The ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents alone. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of liquidity.
In the most recent quarter, the cash ratio was 1.29, indicating that the company had $1.29 in cash and cash equivalents for every dollar of current liabilities. This suggests a healthy liquidity position and capacity to cover immediate financial obligations. However, it is important to note that the cash ratio has fluctuated over time, which could be due to changes in cash holdings, operating performance, or capital structure.
Overall, a trend of increasing cash ratios over time may reflect a more conservative approach to managing liquidity and financial risk. Conversely, a declining trend may raise concerns about the company's ability to meet short-term obligations without relying on external financing. Further analysis of the company's cash management practices, operating efficiency, and financial strategy would provide a more comprehensive understanding of its liquidity position and financial health.
Peer comparison
Dec 31, 2023