Wolfspeed Inc (WOLF)

Current 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
Total current assets	US$ in thousands	2,999,600	3,331,000	3,446,100	4,079,700	3,606,500	2,848,800	3,084,300	1,754,200	1,762,400	1,838,000	1,149,600	1,231,900	1,478,700	1,598,300	1,479,300	1,485,300	1,592,800	1,230,200	1,292,600	1,353,000
Total current liabilities	US$ in thousands	665,300	727,000	671,200	749,300	627,900	607,200	460,000	380,800	388,500	322,600	341,000	319,000	448,800	382,800	385,600	343,400	291,200	251,400	248,500	242,700
Current ratio		4.51	4.58	5.13	5.44	5.74	4.69	6.70	4.61	4.54	5.70	3.37	3.86	3.29	4.18	3.84	4.33	5.47	4.89	5.20	5.57

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 shown some fluctuations over the past several quarters. The ratio has generally been above 4, indicating that the company has had a relatively healthy liquidity position to meet its short-term obligations.

The current ratio peaked at 6.70 in December 2022, suggesting that the company had a strong ability to cover its current liabilities with its current assets at that time. However, the ratio decreased in the following quarters but remained above 4, indicating a still favorable liquidity position.

It is noteworthy that the current ratio dropped to 3.29 in March 2023, which may have indicated a temporary strain on the company's liquidity position. However, this was followed by improvements in the ratio in subsequent quarters.

Overall, the trend in Wolfspeed Inc's current ratio suggests that the company has generally maintained a solid liquidity position, with fluctuations likely reflecting changes in its current asset and current liability levels. A current ratio above 4 is generally considered healthy, as it indicates that the company has more than enough current assets to cover its current liabilities.