Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Microchip Technology Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
- Current Ratio
- The current ratio exhibits notable fluctuations over the observed periods. Starting from a relatively strong position above 3.0 in mid-2017, it declines sharply by early 2018, reaching values below 1.0, indicative of potential short-term liquidity challenges. After bottoming out in early 2019, the ratio shows intermittent recovery, increasing to levels around 1.9 by late 2021. However, subsequent quarters reveal variability, with the ratio moving closer to or just above 1.0, suggesting moderate liquidity stability but continued volatility.
- Quick Ratio
- The quick ratio follows a somewhat parallel trend to the current ratio but remains consistently lower, reflecting a more conservative measure excluding inventory. Initial values near 2.5 fall steeply through 2018 to approximately 0.5, signifying a reduction in readily liquid assets. Recovery phases occur intermittently, particularly in late 2021 when the ratio briefly surpasses 1.1. Nonetheless, later quarters show a renewed decline to around 0.57 to 0.91, indicating ongoing constraints on highly liquid assets relative to current liabilities.
- Cash Ratio
- The cash ratio demonstrates the most pronounced decline and lowest values among the three liquidity metrics. From a starting level near 1.7 in mid-2017, it drops significantly below 0.3 by mid-2018 and remains largely below 0.3 through the subsequent years. Minor rebounds are observed in late 2021 and early 2022, yet the ratio sustains relatively low levels, generally under 0.3, which implies a limited cash reserve in relation to current liabilities throughout most of the examined timeframe.
- Overall Insights
- The liquidity profile over the analyzed quarters indicates a period of decreasing short-term financial flexibility, especially evident from mid-2017 through early 2019. The dwindling quick and cash ratios highlight declining availability of liquid assets, which may raise concerns about the company’s ability to meet immediate obligations solely from liquid resources. The intermittent recoveries in all ratios during late 2021 suggest some improvement in liquidity management or current asset composition, but persistently moderate levels indicate that liquidity risk remains a pertinent consideration. This trend analysis underscores the need for continued monitoring of working capital adequacy and asset liquidity to enhance short-term financial resilience.
Current Ratio
Microchip Technology Inc., current ratio calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current assets | 2,833,700) | 2,676,000) | 2,643,200) | 2,452,600) | 2,200,500) | 2,149,100) | 2,157,100) | 2,145,200) | 2,152,500) | 2,122,100) | 2,135,000) | 2,217,200) | 2,104,000) | 2,177,800) | 2,278,500) | 2,214,800) | 1,877,600) | 2,176,200) | 2,818,400) | 3,356,300) | 2,253,441) | 2,443,422) | 2,298,762) | |||||||
| Current liabilities | 1,611,100) | 2,538,400) | 1,485,400) | 1,399,000) | 1,218,700) | 1,121,800) | 1,089,100) | 2,409,600) | 2,522,200) | 1,975,200) | 2,585,800) | 1,637,400) | 2,336,600) | 2,423,400) | 2,450,800) | 2,374,500) | 643,700) | 2,088,100) | 2,139,300) | 2,017,400) | 756,832) | 734,186) | 736,443) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 1.76 | 1.05 | 1.78 | 1.75 | 1.81 | 1.92 | 1.98 | 0.89 | 0.85 | 1.07 | 0.83 | 1.35 | 0.90 | 0.90 | 0.93 | 0.93 | 2.92 | 1.04 | 1.32 | 1.66 | 2.98 | 3.33 | 3.12 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 2.19 | 2.18 | 2.38 | 2.36 | 2.16 | 2.44 | 2.40 | 2.02 | 2.24 | 2.70 | 2.51 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 1.71 | 1.79 | 2.12 | 2.02 | 1.92 | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | 1.84 | 1.47 | 1.30 | 1.08 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 2.30 | 2.26 | 2.31 | 2.16 | 2.26 | 2.29 | 2.51 | 2.54 | 2.98 | 3.10 | 3.17 | 3.00 | 2.86 | 2.67 | 2.36 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 2.50 | 2.38 | 2.52 | 2.62 | 2.32 | 2.14 | 2.44 | 2.64 | 2.41 | 2.21 | 2.14 | 1.87 | 2.04 | 2.15 | 1.56 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 1.53 | 1.60 | 1.76 | 1.57 | 1.77 | 1.86 | 2.13 | 2.10 | 2.07 | 1.99 | 1.90 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 2.35 | 2.34 | 2.43 | 2.50 | 2.33 | 2.41 | 2.44 | 2.71 | 2.66 | 2.59 | 2.72 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 3.09 | 3.01 | 2.69 | 2.69 | 2.83 | 3.13 | 3.27 | 3.30 | 3.13 | 3.19 | 3.31 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 4.26 | 4.17 | 3.51 | 2.89 | 3.24 | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 3.39 | 3.62 | 5.32 | 6.65 | 7.14 | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 2.42 | 2.42 | 2.09 | 1.75 | 1.61 | 1.61 | 1.65 | 1.68 | 1.72 | 2.02 | 2.15 | 2.14 | 1.97 | 1.57 | 1.76 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 5.69 | 5.72 | 5.17 | 4.70 | 4.92 | 5.09 | 5.54 | 5.33 | 5.63 | 5.08 | 6.12 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,833,700 ÷ 1,611,100 = 1.76
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in current assets, current liabilities, and the resulting current ratio over the observed periods.
- Current Assets
- Current assets display a variable trend with several peaks and troughs throughout the timeline. Initially, there is a moderate increase from approximately 2.3 billion to 3.4 billion, reaching the highest point around March 31, 2018. Subsequently, a decline follows, with values dropping to around 1.9 billion by December 31, 2018. After this trough, current assets exhibit a generally upward trajectory, rising steadily to about 2.8 billion by the end of December 31, 2022, indicating an overall improvement in liquidity resources towards the later periods.
- Current Liabilities
- Current liabilities demonstrate substantial volatility across the quarters. There is an abrupt increase in the first half of 2018, peaking at over 2.1 billion. This is followed by a sharp decline around December 31, 2018, to approximately 644 million, the lowest observed value. Afterward, liabilities surge again, fluctuating considerably, with significant spikes and declines. The highest liabilities appear around September 30, 2022, exceeding 2.5 billion, before dropping again at the year-end. Such variability reflects inconsistent short-term obligations or possible changes in operational or financing activities impacting liabilities.
- Current Ratio
- The current ratio mirrors the fluctuating patterns of assets and liabilities and generally remains above or around 1.0, except for notable dips below 1.0 during multiple quarters in 2019 and 2020. The ratio peaks early in the data series, with values exceeding 3.0, indicating strong short-term liquidity at that time. However, during 2018 and 2019, the ratio falls sharply, even dipping to as low as 0.83, highlighting periods of potential liquidity concerns. From 2021 onwards, the ratio stabilizes above 1.0, fluctuating primarily between 1.75 and 1.98, which suggests an improved and more consistent ability to cover short-term liabilities with current assets in recent years. The decline towards 1.05 in September 2022, followed by a recovery to 1.76 by year-end, shows some variability in liquidity but overall maintains an acceptable short-term financial position.
In summary, the company's liquidity position experienced significant volatility during the period, with current assets and liabilities exhibiting sharp movements and the current ratio reflecting these fluctuations. Later periods show trend stabilization and an improved working capital balance, though certain quarters indicate potential liquidity pressures that may warrant closer monitoring.
Quick Ratio
Microchip Technology Inc., quick ratio calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 288,900) | 304,800) | 377,100) | 317,400) | 313,500) | 253,300) | 277,700) | 280,000) | 370,700) | 368,300) | 378,200) | 401,000) | 397,100) | 401,800) | 434,000) | 428,600) | 432,200) | 459,700) | 635,200) | 901,300) | 672,079) | 826,407) | 773,036) | |||||||
| Short-term investments | —) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 5,200) | 3,300) | 3,100) | 2,300) | 4,000) | 4,500) | 14,500) | 1,295,300) | 427,514) | 488,197) | 457,210) | |||||||
| Accounts receivable, net | 1,175,000) | 1,133,200) | 1,145,000) | 1,072,600) | 930,100) | 985,600) | 1,000,700) | 997,700) | 893,800) | 903,700) | 894,300) | 934,000) | 807,500) | 848,600) | 936,800) | 880,600) | 544,800) | 668,800) | 789,400) | 563,700) | 553,135) | 545,416) | 528,954) | |||||||
| Total quick assets | 1,463,900) | 1,440,000) | 1,524,100) | 1,392,000) | 1,245,600) | 1,240,900) | 1,280,400) | 1,279,700) | 1,266,500) | 1,274,000) | 1,274,500) | 1,337,000) | 1,209,800) | 1,253,700) | 1,373,900) | 1,311,500) | 981,000) | 1,133,000) | 1,439,100) | 2,760,300) | 1,652,728) | 1,860,020) | 1,759,200) | |||||||
| Current liabilities | 1,611,100) | 2,538,400) | 1,485,400) | 1,399,000) | 1,218,700) | 1,121,800) | 1,089,100) | 2,409,600) | 2,522,200) | 1,975,200) | 2,585,800) | 1,637,400) | 2,336,600) | 2,423,400) | 2,450,800) | 2,374,500) | 643,700) | 2,088,100) | 2,139,300) | 2,017,400) | 756,832) | 734,186) | 736,443) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 0.91 | 0.57 | 1.03 | 0.99 | 1.02 | 1.11 | 1.18 | 0.53 | 0.50 | 0.64 | 0.49 | 0.82 | 0.52 | 0.52 | 0.56 | 0.55 | 1.52 | 0.54 | 0.67 | 1.37 | 2.18 | 2.53 | 2.39 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 1.42 | 1.40 | 1.52 | 1.57 | 1.48 | 1.82 | 1.83 | 1.49 | 1.64 | 2.01 | 1.85 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.98 | 1.06 | 1.36 | 1.34 | 1.34 | 1.44 | 1.54 | 1.24 | 0.82 | 0.76 | 1.12 | 1.31 | 1.05 | 0.87 | 0.70 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 1.43 | 1.35 | 1.30 | 1.17 | 1.24 | 1.32 | 1.62 | 1.64 | 2.02 | 2.10 | 2.15 | 1.95 | 1.76 | 1.75 | 1.45 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 2.04 | 1.94 | 2.12 | 2.18 | 1.89 | 1.75 | 2.03 | 2.27 | 2.05 | 1.86 | 1.80 | 1.56 | 1.72 | 1.88 | 1.30 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 0.97 | 1.00 | 1.15 | 1.01 | 1.08 | 1.22 | 1.56 | 1.38 | 1.46 | 1.30 | 1.23 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 1.41 | 1.48 | 1.53 | 1.57 | 1.48 | 1.63 | 1.62 | 1.81 | 1.80 | 1.74 | 1.76 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 1.93 | 1.88 | 1.75 | 1.72 | 1.88 | 2.20 | 2.18 | 2.11 | 1.79 | 1.83 | 1.89 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 2.50 | 2.49 | 2.13 | 1.92 | 2.35 | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 2.63 | 2.95 | 4.63 | 5.96 | 6.44 | 5.22 | 3.92 | 3.56 | 3.46 | 5.42 | 9.60 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 1.47 | 1.32 | 1.21 | 1.01 | 0.90 | 1.16 | 1.25 | 1.34 | 1.38 | 1.64 | 1.78 | 1.75 | 1.57 | 1.33 | 1.54 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 4.12 | 4.24 | 3.93 | 3.67 | 3.98 | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,463,900 ÷ 1,611,100 = 0.91
2 Click competitor name to see calculations.
- Total quick assets
- Over the observed periods, total quick assets demonstrated notable fluctuations, with a broad downward trend in the mid-period followed by partial recovery towards the later dates. Initially, quick assets started at approximately 1.76 billion US dollars, peaking around March 2018 near 2.76 billion before declining sharply to under 1 billion by December 2018. The figure stabilized somewhat thereafter, ranging mostly between 1.2 to 1.4 billion before gradually increasing again to approximately 1.46 billion by the end of 2022. This indicates variability in liquid asset availability, with periods of contraction and recovery.
- Current liabilities
- Current liabilities exhibited significant volatility and substantial spikes during certain quarters, suggesting dynamic short-term obligations management. The liabilities began near 736 million US dollars and surged dramatically around the first two quarters of 2018, reaching over 2 billion dollars consistently through much of that year and into early 2019. Following a decline to around 640 million by the end of 2018, liabilities rose again sharply, with pronounced peaks near 2.5 billion mid-2020 and late 2022 periods. This pattern reflects fluctuating short-term debt or payables, likely influenced by operational or financing activities.
- Quick ratio
- The quick ratio experienced pronounced variability, closely reflecting the movements in quick assets and current liabilities. Early in the dataset, ratios were relatively strong, above 2, indicating ample liquid assets relative to current liabilities. However, starting in late 2017 and through much of 2018, the ratio declined sharply, in some quarters falling below 0.6, evidencing tighter liquidity conditions or increased liabilities surpassing quick assets. Subsequent years saw oscillations mainly between 0.5 and 1.2, with occasional improvements above 1 indicating a more balanced short-term liquidity position, but generally suggesting a cautious liquidity stance with intermittent periods of potential stress. By the end of the series, the ratio was under 1, albeit improved from mid-2022 lows, pointing towards ongoing liquidity management challenges.
Cash Ratio
Microchip Technology Inc., cash ratio calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 288,900) | 304,800) | 377,100) | 317,400) | 313,500) | 253,300) | 277,700) | 280,000) | 370,700) | 368,300) | 378,200) | 401,000) | 397,100) | 401,800) | 434,000) | 428,600) | 432,200) | 459,700) | 635,200) | 901,300) | 672,079) | 826,407) | 773,036) | |||||||
| Short-term investments | —) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 2,000) | 5,200) | 3,300) | 3,100) | 2,300) | 4,000) | 4,500) | 14,500) | 1,295,300) | 427,514) | 488,197) | 457,210) | |||||||
| Total cash assets | 288,900) | 306,800) | 379,100) | 319,400) | 315,500) | 255,300) | 279,700) | 282,000) | 372,700) | 370,300) | 380,200) | 403,000) | 402,300) | 405,100) | 437,100) | 430,900) | 436,200) | 464,200) | 649,700) | 2,196,600) | 1,099,593) | 1,314,604) | 1,230,246) | |||||||
| Current liabilities | 1,611,100) | 2,538,400) | 1,485,400) | 1,399,000) | 1,218,700) | 1,121,800) | 1,089,100) | 2,409,600) | 2,522,200) | 1,975,200) | 2,585,800) | 1,637,400) | 2,336,600) | 2,423,400) | 2,450,800) | 2,374,500) | 643,700) | 2,088,100) | 2,139,300) | 2,017,400) | 756,832) | 734,186) | 736,443) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 0.18 | 0.12 | 0.26 | 0.23 | 0.26 | 0.23 | 0.26 | 0.12 | 0.15 | 0.19 | 0.15 | 0.25 | 0.17 | 0.17 | 0.18 | 0.18 | 0.68 | 0.22 | 0.30 | 1.09 | 1.45 | 1.79 | 1.67 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.76 | 0.83 | 0.90 | 0.92 | 0.84 | 1.08 | 1.17 | 0.85 | 1.01 | 1.31 | 1.09 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.41 | 0.44 | 0.69 | 0.60 | 0.62 | 0.75 | 0.81 | 0.71 | 0.53 | 0.47 | 0.63 | 0.77 | 0.65 | 0.50 | 0.37 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 0.79 | 0.65 | 0.56 | 0.35 | 0.52 | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | 1.29 | 1.11 | 1.20 | 0.87 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 1.64 | 1.54 | 1.69 | 1.76 | 1.49 | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | 1.20 | 1.32 | 1.39 | 0.83 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 0.87 | 0.89 | 1.01 | 0.88 | 0.81 | 0.99 | 1.32 | 1.03 | 1.17 | 1.00 | 0.93 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 0.85 | 0.82 | 0.94 | 0.94 | 0.91 | 1.01 | 1.04 | 1.19 | 1.20 | 1.14 | 1.17 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 1.19 | 0.99 | 0.84 | 0.77 | 1.00 | 1.32 | 1.19 | 1.25 | 1.02 | 1.03 | 1.21 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 2.03 | 2.06 | 1.62 | 1.24 | 1.46 | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 1.92 | 2.25 | 3.66 | 4.89 | 5.34 | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 1.02 | 0.85 | 0.82 | 0.54 | 0.58 | 0.86 | 0.92 | 1.04 | 1.13 | 1.27 | 1.33 | 1.29 | 1.34 | 1.02 | 1.24 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 288,900 ÷ 1,611,100 = 0.18
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit significant volatility over the observed periods. Starting at approximately 1.23 billion US dollars in mid-2017, the amount peaked at around 2.20 billion in early 2018, followed by a sharp decline to values under 500 million through the remainder of 2018 and into 2019. From 2019 onwards, cash assets generally stabilized within a range of approximately 280 to 380 million US dollars, with some fluctuations but no sustained upward or downward trend.
- Current Liabilities
- Current liabilities demonstrate considerable fluctuations with notable peaks and troughs. Initially, values were in the range of 700 million to 750 million up to the end of 2017. Early 2018 saw a substantial increase, reaching levels around 2.0 to 2.1 billion, with this elevated level persisting through much of 2018 before falling dramatically to below 700 million at the end of 2018. From 2019 forward, liabilities consistently remained at higher levels than in the early part of the timeframe, often exceeding one billion US dollars and peaking notably above 2.5 billion in late 2022. This pattern indicates periods of increased short-term obligations with intermittent spikes.
- Cash Ratio
- The cash ratio reveals a declining trend over the entire period under review, highlighting a decrease in liquidity relative to current liabilities. Starting with values above 1.4 in 2017, indicating strong liquidity coverage of current liabilities, the ratio dropped sharply in early 2018, falling below 0.3 and remaining largely under 0.3 for most of the subsequent quarters. The lowest points reached approximately 0.12 to 0.15 between 2020 and early 2021. Minor recoveries were observed sporadically but the cash ratio never approached the earlier high levels, reflecting a weaker position in liquid assets relative to short-term debts.
- Summary Insights
- The data presents a picture of decreased liquidity over time, evidenced by falling cash ratios despite fluctuating but generally high current liabilities. The company's cash assets experienced a sharp peak followed by a substantial and sustained reduction, whereas current liabilities expanded, especially around 2018 and again toward the end of the period in 2022. This combination suggests increasing pressure on short-term financial flexibility and heightened risk linked to meeting immediate obligations solely with cash resources. Such trends warrant close monitoring of liquidity management and potential implications for operational funding and financial strategy.