Cirrus Logic Inc (CRUS)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	502,764	445,784	369,814	442,164	292,119
Short-term investments	US$ in thousands	23,778	34,978	10,601	55,697	22,008
Receivables	US$ in thousands	162,478	150,473	240,264	108,712	153,998
Total current liabilities	US$ in thousands	186,393	216,340	264,783	213,610	158,637
Quick ratio		3.70	2.92	2.34	2.84	2.95

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($502,764K + $23,778K + $162,478K) ÷ $186,393K
= 3.70

The quick ratio of Cirrus Logic Inc has exhibited fluctuations over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.

In 2024, the quick ratio improved to 3.70, signaling that Cirrus Logic had $3.70 in quick assets for every $1 of current liabilities. This increase suggests the company had a stronger ability to cover its short-term liabilities without relying heavily on inventory.

However, it is notable that in 2023, the quick ratio was slightly lower at 2.92 compared to 2024. This indicates a potential decrease in liquidity. Despite this, the ratio remained above 1, indicating that Cirrus Logic still had sufficient quick assets to cover its current liabilities.

In 2022, the quick ratio was 2.34, lower than the previous two years, indicating a potential decrease in liquidity. This might be a cause for concern as it implies a slightly reduced ability to cover short-term obligations using quick assets.

The quick ratio in 2021 was 2.84, showing a modest improvement from 2022 but still slightly lower than the levels seen in 2020, where it was 2.95. This suggests that while the company maintained a relatively strong ability to meet short-term obligations using quick assets, there was a slight decrease in liquidity compared to the previous year.

Overall, the trend in the quick ratio over the past five years for Cirrus Logic Inc has shown fluctuations, with some years indicating better liquidity ratios than others. It is essential for investors and stakeholders to further evaluate the underlying reasons for these fluctuations to assess the company's overall financial health and liquidity position.