Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cisco Systems Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24).
The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a general declining trend over the observed period. Initially, from October 2020 through October 2021, the ratios exhibited relative stability with minor fluctuations. However, a consistent downward trajectory became apparent starting in January 2022, accelerating significantly in the latter half of 2023 and continuing into the forecast period.
- Current Ratio
- The current ratio began at 1.59 in October 2020 and generally remained above 1.40 until January 2024. A substantial decrease is then observed, falling to 0.89 in April 2024. While there is some recovery to 0.96 by October 2025, the ratio remains considerably lower than its initial levels, suggesting a reduced ability to cover short-term liabilities with short-term assets. The forecast indicates a slight increase to 0.96 in October 2025, but remains below the initial values.
- Quick Ratio
- Mirroring the current ratio, the quick ratio also showed initial stability before a pronounced decline. Starting at 1.45 in October 2020, it decreased steadily, reaching 0.68 in April 2024. Similar to the current ratio, a modest recovery is seen, with the ratio reaching 0.69 in October 2025. This indicates a weakening ability to meet short-term obligations with the most liquid assets, excluding inventory. The trend suggests a growing reliance on inventory to meet current obligations.
- Cash Ratio
- The cash ratio exhibits the most significant decline of the three metrics. Beginning at 1.11 in October 2020, it steadily decreased, reaching 0.42 in October 2024. A slight increase to 0.43 is observed in January 2026, but remains substantially below the initial value. This suggests a considerable reduction in immediately available cash to cover current liabilities, indicating increased dependence on other liquid assets or financing options.
The consistent decline across all three ratios suggests a potential increase in short-term liabilities, a decrease in liquid assets, or a combination of both. The acceleration of the downward trend in recent quarters warrants further investigation to determine the underlying causes and potential implications for the company’s financial health. The forecast period suggests that the decline may be stabilizing, but the ratios remain at levels significantly lower than those observed earlier in the period.
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Current Ratio
Cisco Systems Inc., current ratio calculation (quarterly data)
| Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 35,131) | 32,876) | 34,986) | 32,816) | 34,681) | 35,752) | 36,862) | 35,886) | 42,127) | 39,659) | 43,348) | 39,950) | 38,515) | 36,141) | 36,717) | 35,981) | 36,799) | 37,588) | 39,112) | 37,060) | 43,911) | 42,989) | |||||||
| Current liabilities | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | 26,257) | 24,262) | 27,268) | 26,991) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.96 | 0.93 | 1.00 | 0.95 | 0.87 | 0.88 | 0.91 | 0.89 | 1.37 | 1.47 | 1.38 | 1.39 | 1.41 | 1.45 | 1.43 | 1.49 | 1.42 | 1.62 | 1.49 | 1.53 | 1.61 | 1.59 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 1.07 | 0.97 | 0.89 | 0.87 | 0.82 | 0.92 | 0.87 | 0.95 | 1.04 | 1.07 | 0.99 | 0.98 | 0.94 | 0.94 | 0.88 | 0.86 | 0.93 | 1.04 | 1.07 | 1.06 | 1.14 | 1.16 | |||||||
| Arista Networks Inc. | — | — | 3.05 | 3.25 | 3.33 | 3.93 | 4.36 | 4.47 | 4.55 | 5.01 | 4.39 | 4.15 | 4.14 | 3.96 | 4.29 | 4.01 | 3.70 | 3.73 | — | — | — | — | |||||||
| Dell Technologies Inc. | 0.83 | 0.85 | 0.78 | 0.77 | 0.72 | 0.73 | 0.74 | 0.76 | 0.77 | 0.80 | 0.82 | 0.75 | 0.77 | 0.78 | 0.80 | 0.82 | 0.79 | 0.77 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 0.61 | 1.37 | 4.37 | 4.72 | 4.76 | 5.36 | 5.90 | 5.20 | 3.13 | 4.53 | 4.38 | 3.20 | 3.06 | 3.04 | 4.38 | 4.69 | 3.87 | 3.96 | 3.67 | 3.81 | 3.50 | 7.38 | |||||||
| Super Micro Computer Inc. | 1.70 | 5.39 | 5.25 | 6.66 | 6.38 | 3.43 | 3.81 | 4.69 | 2.43 | 2.23 | 2.31 | 2.49 | 2.89 | 2.13 | 1.91 | 1.79 | 1.91 | 1.85 | 1.93 | 2.10 | 2.29 | 2.51 | |||||||
Based on: 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 35,131 ÷ 36,786 = 0.96
2 Click competitor name to see calculations.
The current ratio for the analyzed period demonstrates fluctuations, generally trending downwards before a slight recovery in the most recent quarters. Initially, the ratio exhibited relative stability, followed by a period of decline and subsequent partial stabilization. A closer examination reveals distinct phases in the ratio’s behavior.
- Initial Stability & Early Decline (Oct 2020 – Jul 2021)
- The current ratio began at 1.59 and peaked at 1.62 in October 2021. Throughout this period, the ratio remained relatively consistent, indicating a stable short-term liquidity position. A slight decline to 1.49 was observed in July 2021, suggesting a minor weakening in the ability to cover short-term liabilities with current assets.
- Continued Decline (Oct 2021 – Apr 2023)
- From October 2021 through April 2023, the current ratio experienced a more pronounced downward trend, falling from 1.62 to 1.39. This indicates a progressively diminishing capacity to meet short-term obligations. The lowest point in this phase was 1.37 in January 2024.
- Recent Stabilization & Slight Improvement (Apr 2023 – Jan 2026)
- Beginning in April 2023, the current ratio showed signs of stabilization, albeit at a lower level than the initial period. A significant drop to 0.89 was observed in April 2024, followed by a gradual recovery. The ratio reached 1.00 in January 2025, and continued to fluctuate between 0.93 and 0.96, indicating a modest improvement in short-term liquidity, but remaining below the initial levels. The final reported value in January 2026 is 0.96.
The observed fluctuations suggest a dynamic relationship between current assets and current liabilities. The decline in the ratio warrants further investigation into the underlying drivers, such as changes in working capital management, inventory levels, or short-term debt obligations. While the recent stabilization is encouraging, continued monitoring is crucial to ensure the company maintains adequate short-term liquidity.
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Quick Ratio
Cisco Systems Inc., quick ratio calculation (quarterly data)
| Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 7,458) | 8,400) | 8,346) | 8,161) | 8,556) | 9,065) | 7,508) | 8,913) | 13,715) | 9,602) | 10,123) | 8,044) | 9,009) | 7,292) | 7,079) | 6,952) | 6,731) | 7,619) | 9,175) | 7,350) | 11,793) | 10,822) | |||||||
| Investments | 8,319) | 7,336) | 7,764) | 7,481) | 8,297) | 9,606) | 10,346) | 9,857) | 11,956) | 13,921) | 16,023) | 15,244) | 13,052) | 12,492) | 12,188) | 13,156) | 14,382) | 15,727) | 15,343) | 16,229) | 18,795) | 19,190) | |||||||
| Accounts receivable, net of allowance | 6,606) | 4,827) | 6,701) | 5,277) | 5,669) | 4,457) | 6,685) | 5,127) | 4,884) | 4,833) | 5,854) | 5,104) | 5,237) | 5,439) | 6,622) | 5,783) | 6,003) | 5,306) | 5,766) | 4,425) | 4,307) | 3,980) | |||||||
| Financing receivables, net | 2,944) | 3,085) | 3,061) | 2,958) | 3,074) | 3,123) | 3,338) | 3,443) | 3,476) | 3,414) | 3,352) | 3,402) | 3,557) | 3,683) | 3,905) | 3,804) | 3,997) | 4,070) | 4,380) | 4,648) | 5,027) | 5,105) | |||||||
| Total quick assets | 25,327) | 23,648) | 25,872) | 23,877) | 25,596) | 26,251) | 27,877) | 27,340) | 34,031) | 31,770) | 35,352) | 31,794) | 30,855) | 28,906) | 29,794) | 29,695) | 31,113) | 32,722) | 34,664) | 32,652) | 39,922) | 39,097) | |||||||
| Current liabilities | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | 26,257) | 24,262) | 27,268) | 26,991) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.69 | 0.67 | 0.74 | 0.69 | 0.64 | 0.65 | 0.69 | 0.68 | 1.10 | 1.18 | 1.13 | 1.11 | 1.13 | 1.16 | 1.16 | 1.23 | 1.20 | 1.41 | 1.32 | 1.35 | 1.46 | 1.45 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 0.91 | 0.85 | 0.77 | 0.72 | 0.68 | 0.78 | 0.75 | 0.80 | 0.87 | 0.92 | 0.84 | 0.81 | 0.76 | 0.77 | 0.71 | 0.70 | 0.76 | 0.88 | 0.91 | 0.89 | 0.97 | 1.02 | |||||||
| Arista Networks Inc. | — | — | 2.35 | 2.48 | 2.58 | 3.07 | 3.46 | 3.52 | 3.47 | 3.67 | 3.16 | 2.86 | 2.73 | 2.65 | 3.05 | 2.89 | 2.73 | 2.97 | — | — | — | — | |||||||
| Dell Technologies Inc. | 0.53 | 0.45 | 0.41 | 0.43 | 0.40 | 0.40 | 0.44 | 0.47 | 0.47 | 0.48 | 0.52 | 0.41 | 0.44 | 0.44 | 0.49 | 0.60 | 0.53 | 0.55 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 0.41 | 0.94 | 2.87 | 3.18 | 3.24 | 3.65 | 4.02 | 3.47 | 2.24 | 3.65 | 3.57 | 2.53 | 2.47 | 2.45 | 3.92 | 4.25 | 3.44 | 3.51 | 3.25 | 3.38 | 3.05 | 6.39 | |||||||
| Super Micro Computer Inc. | 0.98 | 2.86 | 3.14 | 3.63 | 3.31 | 1.68 | 1.88 | 2.19 | 1.12 | 0.87 | 1.16 | 0.95 | 1.17 | 0.72 | 0.75 | 0.62 | 0.62 | 0.66 | 0.72 | 0.75 | 0.95 | 1.06 | |||||||
Based on: 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,327 ÷ 36,786 = 0.69
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a generally declining trend, punctuated by periods of relative stability. Initially, the ratio fluctuates within a narrow range before exhibiting a more pronounced downward movement in later periods.
- Initial Period (Oct 2020 - Jan 2022)
- The quick ratio begins at 1.45 and remains relatively stable, oscillating between 1.32 and 1.46 over the first six quarters. This suggests a consistent ability to meet short-term obligations with highly liquid assets. A slight decrease is observed towards the end of this period, falling to 1.20 by January 2022.
- Intermediate Period (Apr 2022 - Oct 2023)
- From April 2022 through October 2023, the quick ratio continues to exhibit modest fluctuations, generally remaining above 1.10. There is a slight upward movement in the latter half of this period, reaching 1.18 in July 2023, before decreasing again to 1.10 in January 2024.
- Recent Period (Jan 2024 - Jan 2026)
- A significant downward trend becomes apparent starting in January 2024. The quick ratio declines substantially, reaching 0.68 by April 2024 and remaining below 0.70 for the subsequent four quarters. While a slight recovery is seen in April 2025 (0.69) and July 2025 (0.74), the ratio remains considerably lower than its initial values, ending the analyzed period at 0.67 in January 2026. This indicates a weakening ability to cover immediate liabilities with quick assets.
The observed decline in the quick ratio warrants further investigation. The decrease could be attributed to a reduction in quick assets, an increase in current liabilities, or a combination of both. The substantial drop in the most recent periods suggests a potential increase in short-term financial risk.
- Total Quick Assets
- Total quick assets decreased from approximately 39,097 US$ in millions in October 2020 to 23,648 US$ in millions in October 2025. This represents a significant reduction in readily available liquid assets.
- Current Liabilities
- Current liabilities generally increased over the analyzed period, moving from 26,991 US$ in millions in October 2020 to 36,786 US$ in millions in January 2026. This increase in short-term obligations contributes to the declining quick ratio.
The combined effect of decreasing quick assets and increasing current liabilities has resulted in a notable deterioration of the company’s short-term liquidity position.
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Cash Ratio
Cisco Systems Inc., cash ratio calculation (quarterly data)
| Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 7,458) | 8,400) | 8,346) | 8,161) | 8,556) | 9,065) | 7,508) | 8,913) | 13,715) | 9,602) | 10,123) | 8,044) | 9,009) | 7,292) | 7,079) | 6,952) | 6,731) | 7,619) | 9,175) | 7,350) | 11,793) | 10,822) | |||||||
| Investments | 8,319) | 7,336) | 7,764) | 7,481) | 8,297) | 9,606) | 10,346) | 9,857) | 11,956) | 13,921) | 16,023) | 15,244) | 13,052) | 12,492) | 12,188) | 13,156) | 14,382) | 15,727) | 15,343) | 16,229) | 18,795) | 19,190) | |||||||
| Total cash assets | 15,777) | 15,736) | 16,110) | 15,642) | 16,853) | 18,671) | 17,854) | 18,770) | 25,671) | 23,523) | 26,146) | 23,288) | 22,061) | 19,784) | 19,267) | 20,108) | 21,113) | 23,346) | 24,518) | 23,579) | 30,588) | 30,012) | |||||||
| Current liabilities | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | 26,257) | 24,262) | 27,268) | 26,991) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.43 | 0.44 | 0.46 | 0.45 | 0.42 | 0.46 | 0.44 | 0.47 | 0.83 | 0.87 | 0.84 | 0.81 | 0.81 | 0.79 | 0.75 | 0.83 | 0.81 | 1.00 | 0.93 | 0.97 | 1.12 | 1.11 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 0.51 | 0.41 | 0.33 | 0.39 | 0.34 | 0.37 | 0.37 | 0.47 | 0.54 | 0.55 | 0.42 | 0.50 | 0.47 | 0.37 | 0.31 | 0.37 | 0.40 | 0.43 | 0.50 | 0.57 | 0.66 | 0.58 | |||||||
| Arista Networks Inc. | — | — | 2.00 | 2.17 | 2.18 | 2.61 | 3.04 | 3.05 | 2.90 | 3.06 | 2.62 | 2.41 | 2.26 | 2.10 | 2.34 | 2.37 | 2.27 | 2.50 | — | — | — | — | |||||||
| Dell Technologies Inc. | 0.15 | 0.15 | 0.08 | 0.11 | 0.09 | 0.12 | 0.15 | 0.17 | 0.16 | 0.16 | 0.17 | 0.09 | 0.10 | 0.13 | 0.17 | 0.32 | 0.21 | 0.26 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 0.31 | 0.74 | 2.23 | 2.46 | 2.58 | 3.00 | 3.29 | 2.74 | 1.86 | 3.27 | 3.18 | 2.17 | 2.06 | 2.02 | 3.56 | 3.88 | 3.08 | 3.08 | 2.93 | 3.05 | 2.63 | 5.49 | |||||||
| Super Micro Computer Inc. | 0.27 | 1.79 | 2.20 | 1.78 | 1.05 | 0.73 | 0.71 | 1.23 | 0.36 | 0.34 | 0.32 | 0.33 | 0.33 | 0.18 | 0.18 | 0.17 | 0.21 | 0.25 | 0.24 | 0.23 | 0.47 | 0.51 | |||||||
Based on: 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,777 ÷ 36,786 = 0.43
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates a generally declining trend, punctuated by periods of relative stability. Initially, the ratio exhibited values above 1.0, indicating a strong ability to meet current obligations with solely cash and cash equivalents. However, over the observed timeframe, this capacity diminished.
- Initial Period (Oct 2020 - Oct 2021)
- The cash ratio began at 1.11 and fluctuated around the 1.0 mark, reaching a high of 1.12 in January 2021 before settling at 1.00 by October 2021. This suggests a consistently healthy short-term liquidity position during this phase.
- Decline and Stabilization (Jan 2022 - Apr 2023)
- A noticeable decline commenced in January 2022, with the ratio falling to 0.81. It experienced minor recoveries, reaching 0.83 in April 2022 and 0.84 in July 2023, but generally remained below 0.90. This period indicates a weakening, though still acceptable, ability to cover current liabilities with available cash.
- Significant Reduction (Jul 2023 - Apr 2024)
- From July 2023 through April 2024, the cash ratio experienced a substantial decrease. The ratio fell from 0.84 to 0.47. This represents a significant reduction in the proportion of current liabilities covered by cash assets, potentially signaling increased liquidity risk.
- Recent Fluctuations (Apr 2024 - Jan 2026)
- The ratio remained consistently below 0.50, fluctuating between 0.42 and 0.46. The most recent value, recorded in January 2026, is 0.43. This suggests a continued reliance on sources other than cash to meet short-term obligations. While not critically low, this level warrants monitoring.
Overall, the trend indicates a shift in the company’s liquidity profile. While initially possessing a robust cash position relative to its current liabilities, the company’s ability to cover these obligations solely with cash has diminished considerably over the analyzed period. The recent values suggest a greater dependence on other liquid assets or operational cash flow to manage short-term financial commitments.
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