The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. MACOM Technology Solutions Holdings's Cash Ratio for the quarter that ended in Dec. 2023 was 4.50.
MACOM Technology Solutions Holdings has a Cash Ratio of 4.50. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for MACOM Technology Solutions Holdings's Cash Ratio or its related term are showing as below:
MTSI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.67 Med: 2.35 Max: 6.34
Current: 4.5
During the past 13 years, MACOM Technology Solutions Holdings's highest Cash Ratio was 6.34. The lowest was 0.67. And the median was 2.35.
MTSI's Cash Ratio is ranked better than 86.98% of 991
companies
in the Semiconductors industry
Industry Median: 1.09
vs MTSI: 4.50
MACOM Technology Solutions Holdings Cash Ratio Historical Data
The historical data trend for MACOM Technology Solutions Holdings's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, MACOM Technology Solutions Holdings's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MACOM Technology Solutions Holdings Cash Ratio Distribution
For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where MACOM Technology Solutions Holdings's Cash Ratio falls into.
MACOM Technology Solutions Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
MACOM Technology Solutions Holdings's Cash Ratio for the fiscal year that ended in Sep. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MACOM Technology Solutions Holdings (NAS:MTSI) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
MACOM Technology Solutions Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of MACOM Technology Solutions Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Business Description
MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.
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