Cohu Inc (COHU)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 245,524 | 293,386 | 275,290 | 226,649 | 242,341 | 232,398 | 280,586 | 267,068 | 290,201 | 288,785 | 353,896 | 143,119 | 149,358 | 169,926 | 162,728 | 171,474 | 155,194 | 145,094 | 143,014 | 159,521 |
| Short-term investments | US$ in thousands | 90,174 | 94,180 | 97,027 | 97,646 | 143,235 | 136,983 | 87,495 | 91,502 | 89,704 | 76,020 | 80,193 | 147,926 | 20,669 | 949 | 920 | 901 | 904 | 573 | 581 | 565 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | -200 | -300 | -300 |
| Total current liabilities | US$ in thousands | 103,421 | 128,444 | 138,402 | 145,028 | 160,872 | 170,757 | 194,268 | 176,469 | 192,459 | 202,152 | 321,312 | 208,033 | 174,453 | 146,903 | 159,041 | 163,717 | 148,885 | 139,349 | 146,931 | 138,089 |
| Quick ratio | 3.25 | 3.02 | 2.69 | 2.24 | 2.40 | 2.16 | 1.89 | 2.03 | 1.97 | 1.80 | 1.35 | 1.40 | 0.97 | 1.16 | 1.03 | 1.05 | 1.05 | 1.04 | 0.98 | 1.16 |
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 exhibited fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
From the data provided, we can observe that the quick ratio of Cohu Inc has generally been above 1, indicating a healthy liquidity position. The trend shows that the quick ratio has been improving in recent quarters, reaching a peak of 3.25 at the end of December 2023. This suggests that the company has been managing its short-term liabilities effectively by holding sufficient liquid assets.
It is important to note that a quick ratio that is too high may indicate that the company is not efficiently deploying its assets to generate returns. However, a consistently strong quick ratio is generally favorable as it provides a cushion against unforeseen financial challenges.
Overall, the gradual improvement in Cohu Inc's quick ratio indicates a positive trend in its liquidity management, which enhances its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023