Wolfspeed Inc (WOLF)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	2,999,600	3,606,500	1,762,400	1,478,700	1,592,800
Total current liabilities	US$ in thousands	665,300	627,900	388,500	448,800	291,200
Current ratio		4.51	5.74	4.54	3.29	5.47

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,999,600K ÷ $665,300K
= 4.51

The current ratio for Wolfspeed Inc has varied over the past five years, ranging from 3.29 to 5.74, with the most recent ratio as of June 30, 2024, standing at 4.51. This indicates that the company has, on average, more than four times the current assets to cover its current liabilities.

The fluctuation in the current ratio over the years suggests changes in the company's liquidity position and ability to meet short-term obligations. The higher ratios in 2023 and 2020 indicate a stronger liquidity position, while the lower ratio in 2021 may raise some concerns regarding the company's short-term financial health.

Overall, a current ratio above 2 is generally considered healthy, demonstrating that Wolfspeed Inc has ample current assets to cover its current liabilities. However, it is important to analyze other aspects of the company's financial statements and business operations to get a comprehensive understanding of its financial health.