Cohu Inc (COHU)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 206,407 | 245,524 | 242,341 | 290,201 | 149,358 |
| Short-term investments | US$ in thousands | 55,685 | 90,174 | 143,235 | 89,704 | 20,669 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 85,184 | 103,421 | 160,872 | 192,459 | 174,924 |
| Quick ratio | 3.08 | 3.25 | 2.40 | 1.97 | 0.97 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($206,407K
+ $55,685K
+ $—K)
÷ $85,184K
= 3.08
The quick ratio of Cohu Inc has shown a positive trend over the past five years, indicating an improvement in the company's short-term liquidity position.
As of December 31, 2020, the quick ratio was at 0.97, suggesting that the company had almost enough liquid assets to cover its current liabilities. However, there was only a small margin of safety in meeting its short-term obligations.
By December 31, 2021, the quick ratio improved significantly to 1.97, indicating that Cohu Inc had almost twice the amount of liquid assets compared to its current liabilities. This suggests a healthier liquidity position and improved ability to meet short-term financial obligations.
The trend continued with the quick ratio increasing to 2.40 by December 31, 2022, and further to 3.25 by December 31, 2023. These ratios indicate a substantial increase in the company's ability to cover its short-term liabilities with its liquid assets.
However, there was a slight decrease in the quick ratio to 3.08 by December 31, 2024, although the ratio still remains at a healthy level, showing that Cohu Inc has a strong liquidity position and is well-positioned to meet its short-term financial obligations.
Overall, the increasing trend in Cohu Inc's quick ratio over the years reflects a strengthening liquidity position, suggesting sound financial management and a reduced risk of financial distress in the short term.
Peer comparison
Dec 31, 2024