Axcelis Technologies Inc (ACLS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 123,512 | 167,297 | 185,595 | 294,923 | 203,479 |
| Short-term investments | US$ in thousands | 447,831 | 338,851 | 246,571 | 0 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 207,522 | 285,129 | 248,132 | 150,140 | 84,431 |
| Quick ratio | 2.75 | 1.78 | 1.74 | 1.96 | 2.41 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($123,512K
+ $447,831K
+ $—K)
÷ $207,522K
= 2.75
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided for Axcelis Technologies Inc, the trend of the quick ratio over the past five years shows some fluctuations.
As of December 31, 2020, the quick ratio stood at a healthy 2.41, indicating that the company had more than enough liquid assets to cover its current liabilities. However, there was a slight decrease in the quick ratio to 1.96 by December 31, 2021, suggesting a potential reduction in the company's ability to quickly meet its short-term obligations.
The trend continued with a further decrease in the quick ratio to 1.74 by December 31, 2022, before a slight improvement to 1.78 by December 31, 2023. These fluctuations may indicate changes in the company's liquidity position and its ability to manage short-term obligations efficiently.
The most significant change was observed by December 31, 2024, where the quick ratio surged to 2.75, surpassing the initial ratio in 2020. This increase may signify a strengthened liquidity position, potentially resulting from improved cash management or increased liquid asset reserves.
Overall, while there have been fluctuations in Axcelis Technologies Inc's quick ratio over the past five years, the company seems to have maintained a relatively healthy liquidity position, ensuring it can readily meet its short-term financial commitments. Further analysis of the company's financial statements and liquidity management practices may provide additional insights into the factors driving these fluctuations.
Peer comparison
Dec 31, 2024