These Technology Companies Carry Very High Current Ratios

The following five companies in the Technology sector have high current ratios.

The current ratio is calculated as current assets over current liabilities.  Current assets are those accounts such as cash, receivables, and other highly liquid assets that can be readily converted to cash.  Current liabilities are generally considered to be those debts due within one fiscal quarter, such as accounts payable, wages, interest payments on long-term debt that are due in the near future, etc.  Therefore, the current ratio is essentially a measure of a company’s ability to pay its bills in the near term.  Companies that are liquid enough to pay their bills can continue operating without trouble.  Accordingly, the higher the current ratio the more likely it is that the company won’t have a problem paying its bills.  Of course, as with all financial ratios, the current ratio can’t be used in isolation to determine whether a stock is a buy or not.

Note that this list excludes all companies whose market capitalization is less than $500 million.

  1. Sycamore Networks, Inc. (NASDAQ:SCMR):  The stock has traded in a 52-week range of $16.18 to $34.31 per share and most recently traded at $23.01 per share.  Its market capitalization is $65.64 million and it lost $0.46 per share last year.  Its current ratio is 23.92 and its book value per share is $15.82.  About the company: Sycamore Networks, Inc. develops and markets software-based optical networking products.  The Company’s customers include local exchange carriers, incumbent local exchange carriers, long distance carriers, Internet service providers, cable operators, international telephone companies, and wholesale carriers.
  2. Renren Inc. (NYSE:RENN):  The shares have traded in a 52-week range of $12.61 to $24 and most recently traded at $13.15 per share.  Its market capitalization is $1.31 billion and it lost $0.94 per share last year.  Its current ratio is 17.23 and its book value per share is -$2.41.  About the company: Renren, Inc. operates an Internet website.  The Company operates a real-time social networking website that offers users the ability to communicate, share information and user-generated content, play online games, listen to music, shop for deals, and use other services.
  3. Hitite Microwave Corporation (NASDAQ:HITT):  The shares have traded in a 52-week range of $41.11 and $67.55 and most recently traded at $64.49.  Its market capitalization is $1.94 billion and it earned $2.68 per share last year.  Its current ratio is 13.63 and its book value per share is $13.27.  About the company: Hittite Microwave Corporation designs and develops integrated circuits, modules, and subsystems for radio frequency, microwave, and millimeter wave applications.  The Company’s products include power amplifiers, switches, modulators, converters, and phase shifters.
  4. EZchip Semiconductor Ltd. (NASDAQ:EZCH):  The stock has traded in a 52-week range of $15.51 to $34.66 and most recently traded at $33.96 per share.  IOts market capitalization is $895.56 million and it earned $0.52 per share last year.  Its current ratio is 15.2 and its book value per share is $8.03.  About the company: EZchip Semiconductor Ltd is a fabless semiconductor that develops Ethernet network processors.
  5. Tessera Technologies, Inc. (NASDAQ:TSRA):  The stock has traded in a 52-week range of $14.96 to $23.18 and most recently traded at $19.23 per share.  Its market capitalization is $982.98 million and it earned $1.16 per share last year.  Its current ratio is 19.55 and its book value per share is $13.43.  About the company: Tessera Technologies, Inc. provides proprietary chip sale packaging technology.  The Company’s technology accelerates demand for performance and miniturization in wireless communications, Internet access, and computing and consumer electronics.

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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