Analog Devices Inc (ADI)

Quick ratio

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cash	US$ in thousands	1,303,560	958,061	1,149,250	1,177,610	1,670,460	1,470,570	1,524,960	1,737,730	1,790,400	1,977,960	1,480,700	1,305,220	1,048,060	1,055,860	1,090,260	784,937	654,408	648,322	612,164	713,601
Short-term investments	US$ in thousands	—	315,980	—	—	—	454,545	—	—	—	—	105,562	94,033	91,720	86,729	82,953	—	—	-47,154	—	—
Receivables	US$ in thousands	1,196,720	1,469,730	1,616,240	1,616,260	1,629,870	1,800,460	1,742,650	1,608,250	1,636,930	1,459,060	823,163	—	826,964	737,536	—	—	—	635,136	—	—
Total current liabilities	US$ in thousands	2,923,370	3,200,970	2,831,020	2,646,410	2,433,680	2,442,660	2,441,200	2,326,210	2,221,910	2,770,310	2,793,340	2,776,830	1,676,760	1,364,990	1,687,780	1,582,000	1,770,540	1,508,630	1,483,680	1,365,040
Quick ratio		0.86	0.86	0.98	1.06	1.36	1.53	1.34	1.44	1.54	1.24	0.86	0.50	1.17	1.38	0.70	0.50	0.37	0.82	0.41	0.52

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,303,560K + $—K + $1,196,720K) ÷ $2,923,370K
= 0.86

The quick ratio of Analog Devices Inc., a measure of the company's ability to meet its short-term obligations with its most liquid assets, has fluctuated over the past eight quarters.

In Q1 2024, the quick ratio was 0.98, indicating that the company had $0.98 in liquid assets for every dollar of current liabilities, reflecting a slight decrease from the previous quarter. The trend of declining quick ratio from Q1 2023 to Q1 2024 may suggest a potential liquidity challenge as the company may have less available liquid assets to cover its short-term liabilities.

However, the quick ratio remained above 1 in most quarters, implying that Analog Devices Inc. generally had enough liquid assets to cover its short-term obligations throughout the period under review. Notably, the quick ratio was strongest in Q1 2023 at 1.50, indicating a significant cushion of liquid assets relative to current liabilities.

Overall, while the company's quick ratio has shown variability, maintaining a quick ratio above 1 for the most part indicates a reasonable level of liquidity and ability to meet short-term financial obligations.