Cirrus Logic Inc (CRUS)

Quick ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash	US$ in thousands	539,620	502,764	445,784	369,814	442,164
Short-term investments	US$ in thousands	56,160	23,778	34,978	10,601	55,697
Receivables	US$ in thousands	216,009	162,478	150,473	240,264	108,712
Total current liabilities	US$ in thousands	195,188	186,393	216,340	264,783	213,610
Quick ratio		4.16	3.70	2.92	2.34	2.84

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($539,620K + $56,160K + $216,009K) ÷ $195,188K
= 4.16

The quick ratio of Cirrus Logic Inc has demonstrated a generally positive trend over the past five years, indicating the company's strong liquidity position. In March 31, 2021, the quick ratio stood at 2.84, signifying that Cirrus Logic had $2.84 in liquid assets to cover each dollar of current liabilities.

By March 31, 2022, the quick ratio decreased slightly to 2.34 but remained above the benchmark of 1, suggesting that the company was still in a healthy position to meet its short-term obligations.

In the following years, the quick ratio improved significantly, reaching 2.92 in March 31, 2023, 3.70 in March 31, 2024, and 4.16 in March 31, 2025. These higher quick ratios reflect an increase in the company's ability to fulfill its immediate financial commitments with liquid assets.

Overall, the consistent rise in Cirrus Logic's quick ratio indicates a strengthening liquidity position and suggests that the company has been effectively managing its short-term financial obligations.