Cohu Inc (COHU)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 245,524 | 242,341 | 290,201 | 149,358 | 155,194 |
| Short-term investments | US$ in thousands | 90,174 | 143,235 | 89,704 | 20,669 | 904 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 103,421 | 160,872 | 192,459 | 174,453 | 148,885 |
| Quick ratio | 3.25 | 2.40 | 1.97 | 0.97 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($245,524K
+ $90,174K
+ $—K)
÷ $103,421K
= 3.25
The quick ratio of Cohu Inc has shown an improving trend over the past five years, indicating the company's increasing ability to meet its short-term obligations using its most liquid assets. In 2023, the quick ratio stood at 3.25, significantly higher than in the previous years, reflecting a strong liquidity position. This suggests that Cohu Inc has ample liquid assets, such as cash and marketable securities, relative to its current liabilities.
The substantial increase in the quick ratio from 2020 to 2023 indicates an enhanced ability to cover short-term liabilities without relying heavily on inventory or slow-moving assets. This improvement may be attributed to efficient management of working capital and a more prudent approach to liquidity management by Cohu Inc.
Overall, the increasing trend in the quick ratio demonstrates Cohu Inc's strengthening financial position and ability to weather short-term financial challenges effectively. It suggests that the company has sufficient liquid resources to support its operations and meet its immediate financial obligations.
Peer comparison
Dec 31, 2023