Qualcomm Inc. (NASDAQ:QCOM)

The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally improving trend over the observed period. Initial values show a relatively strong liquidity profile, which experiences a decline through the first half of 2022 before exhibiting a consistent recovery and subsequent strengthening through the end of the observation period.

Current Ratio

The current ratio begins at 2.15 and decreases to a low of 1.61 in June 2022. Following this, a clear upward trend is observed, peaking at 3.19 in June 2025 before slightly decreasing to 2.82 and 2.51 in subsequent quarters. This suggests an increasing ability to cover short-term liabilities with short-term assets, followed by a stabilization at a still healthy level.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio, starting at 1.78 and declining to 0.90 by June 2022. A recovery begins in September 2022, with the ratio reaching 2.02 in June 2025. The ratio then decreases to 1.84 and 1.63 in the final two observed periods. This indicates an improving ability to meet short-term obligations with the most liquid assets, though the recent decline warrants monitoring.

Cash Ratio

The cash ratio exhibits the most pronounced decline, decreasing from 1.33 to 0.58 by June 2022. A recovery is then evident, reaching 1.58 in June 2025. The ratio subsequently decreases to 1.36 and 1.20 in the final two quarters. While the cash ratio remains below its initial value, the improvement from the 2022 low suggests increased immediate liquidity. The recent decline, however, should be noted.

Overall, the observed trends suggest a period of liquidity challenges in the first half of 2022, followed by a sustained improvement in all three liquidity ratios. While recent quarters show a slight moderation in these ratios, the company maintains a generally healthy liquidity position as of the end of the observation period.

The current ratio exhibited fluctuations over the analyzed period, spanning from December 2020 to December 2025. Initially, the ratio demonstrated a decline before stabilizing and subsequently increasing. A general upward trend is apparent in the latter half of the period.

Initial Decline (Dec 2020 - Jun 2021)

The current ratio began at 2.15 in December 2020 and experienced a consistent decrease, reaching 1.65 by June 2021. This suggests a relative increase in short-term obligations compared to short-term assets during this timeframe.

Stabilization and Moderate Increase (Jun 2021 - Dec 2022)

Following the decline, the ratio stabilized between 1.61 and 1.75 for several quarters, indicating a period of relative balance between current assets and current liabilities. A noticeable increase then occurred, rising to 2.09 by December 2022. This improvement suggests enhanced short-term liquidity.

Significant Improvement and Peak (Dec 2022 - Jun 2025)

The current ratio continued its upward trajectory, peaking at 3.19 in June 2025. The period from December 2022 to June 2025 shows a consistent strengthening of the company’s ability to cover its short-term liabilities with its short-term assets. The ratio reached 2.42 in March 2023, 2.56 in December 2023, 2.65 in March 2024, and 2.73 in December 2024 before reaching its peak.

Recent Fluctuation (Jun 2025 - Dec 2025)

A slight decrease was observed from June 2025 (3.19) to December 2025 (2.82). While still representing a strong liquidity position, this suggests a potential shift in the composition of current assets or liabilities. The ratio ended the period at 2.51 in September 2025 and 2.82 in December 2025.

Overall, the trend indicates improving liquidity over the majority of the analyzed period, with a recent slight moderation. The company generally demonstrates a comfortable ability to meet its short-term obligations, as evidenced by the consistently positive and, for the most part, increasing current ratio.

The quick ratio for the analyzed period demonstrates fluctuations, generally trending upwards with some notable dips. Initially, the ratio begins at 1.78 and experiences a gradual decline over the first five quarters, reaching a low of 1.25. Subsequently, the ratio exhibits increased volatility, with a rise to 1.32, followed by a decline to 1.16, and then a recovery to 1.47. The final quarters show a generally increasing trend, peaking at 2.02 before settling at 1.63 in the most recent period.

Initial Decline (Dec 27, 2020 – Dec 26, 2021)

From December 2020 through December 2021, the quick ratio decreased from 1.78 to 1.25. This decline suggests a weakening in the company’s ability to meet its short-term obligations with its most liquid assets, relative to its current liabilities. The decrease is not precipitous, but indicates a consistent erosion of this liquidity measure.

Volatility and Recovery (Mar 27, 2022 – Dec 25, 2022)

The period between March 2022 and December 2022 is characterized by volatility. The ratio initially dips to 1.16, then rises to 1.21, falls again to 1.01, and finally recovers to 1.21 and then 1.32. This suggests potential short-term liquidity challenges followed by improvements, possibly due to changes in working capital management or liability structure.

Upward Trend and Recent Performance (Mar 26, 2023 – Dec 28, 2025)

From March 2023 onwards, the quick ratio generally trends upwards, reaching a high of 2.02 in June 2025. This indicates a strengthening of the company’s short-term liquidity position. However, the ratio experiences a decline in the final period, ending at 1.63. While still above the initial values, this recent decrease warrants monitoring. The ratio consistently remains above 1.0 throughout the entire period, indicating the company possesses more quick assets than current liabilities.

Total Quick Assets and Current Liabilities

The fluctuations in the quick ratio correlate with changes in both total quick assets and current liabilities. While quick assets generally remain relatively stable, with a range between approximately US$10.6 billion and US$17.9 billion, current liabilities also exhibit variability. The largest decrease in the quick ratio often coincides with increases in current liabilities, and vice versa. The increase in the quick ratio in the later periods is supported by both increasing quick assets and decreasing current liabilities.

The cash ratio for the analyzed period demonstrates fluctuations, generally exhibiting a declining trend initially followed by a recovery and subsequent stabilization. The ratio began at 1.33 and generally decreased through the first half of 2022 before increasing again. Recent quarters show a relatively stable pattern.

Initial Decline (Dec 2020 – Jun 2022)

From December 2020 to June 2022, the cash ratio experienced a consistent decline from 1.33 to 0.58. This decrease suggests a weakening in the company’s immediate ability to cover its current liabilities with only cash and cash equivalents. The decline in the ratio correlates with a more rapid increase in current liabilities than in total cash assets during this period.

Recovery and Stabilization (Sep 2022 – Jun 2025)

Beginning in September 2022, the cash ratio began to recover, reaching 1.58 in June 2025. This improvement indicates a strengthening of the company’s short-term liquidity position. The recovery is attributable to a combination of increasing cash assets and decreasing current liabilities. From September 2022 to June 2025, the ratio increased from 0.54 to 1.58.

Recent Performance (Sep 2024 – Jun 2025)

The most recent four quarters (September 2024 through June 2025) show a relatively stable cash ratio, fluctuating between 1.27 and 1.58. This suggests a consistent and manageable short-term liquidity position. The ratio demonstrates a slight decrease in the most recent quarter, but remains at a healthy level.

Total Cash Assets and Current Liabilities

Total cash assets decreased from approximately US$12.3 billion in December 2020 to a low of US$6.8 billion in June 2022, before increasing to US$13.0 billion in June 2024 and US$12.3 billion in June 2025. Current liabilities increased from US$9.2 billion in December 2020 to a high of US$13.4 billion in March 2022, then decreased to US$7.8 billion in June 2025. These movements in the underlying components directly influence the observed trends in the cash ratio.

Overall, the cash ratio indicates a period of initial liquidity strain followed by a strengthening of the company’s ability to meet its short-term obligations. The recent stabilization suggests a more consistent liquidity profile.