Cirrus Logic Inc (CRUS)

Quick ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Sep 23, 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
Cash	US$ in thousands	539,620	526,444	445,759	491,351	502,764	483,931	277,805	277,805	352,346	445,784	434,544	355,043	379,335	369,814	195,121	386,741	385,127	442,164	327,294	247,536
Short-term investments	US$ in thousands	56,160	37,535	32,499	25,680	23,778	32,842	34,636	34,636	35,765	34,978	28,373	23,869	18,397	10,601	3,719	8,152	60,503	55,697	43,289	36,641
Receivables	US$ in thousands	216,009	261,943	324,098	190,079	162,478	217,269	271,894	271,894	186,033	150,473	270,493	304,546	206,272	240,264	326,131	280,967	136,534	108,712	244,803	181,496
Total current liabilities	US$ in thousands	195,188	210,913	229,276	201,742	186,393	178,594	201,190	201,190	202,854	216,340	228,549	282,365	252,596	264,783	239,514	500,381	186,501	213,610	184,855	178,043
Quick ratio		4.16	3.92	3.50	3.51	3.70	4.11	2.90	2.90	2.83	2.92	3.21	2.42	2.39	2.34	2.19	1.35	3.12	2.84	3.33	2.62

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 shown fluctuations over the reported periods, ranging from 1.35 to 4.16. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets excluding inventories.

The values above 1 suggest that Cirrus Logic Inc has an adequate level of quick assets to cover its current liabilities. A higher quick ratio is generally preferable as it signifies stronger liquidity and a lower risk of insolvency.

The quick ratio peaked at 4.16 in March 31, 2025, indicating a strong ability to meet short-term obligations without relying on inventory. However, the ratio dipped to 1.35 in September 30, 2021, which could raise concerns about liquidity during that period.

Overall, the company's quick ratio has generally been within a healthy range over the reported periods, reflecting a balance between liquidity and efficiency in managing short-term obligations.