Cirrus Logic Inc (CRUS)

Quick ratio

		Mar 31, 2024	Dec 31, 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	502,764	483,931	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	285,922	292,119	342,301	221,937	198,077
Short-term investments	US$ in thousands	23,778	32,842	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	29,943	22,008	13,098	22,563	52,350
Receivables	US$ in thousands	162,478	217,269	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	136,539	153,998	175,937	217,962	111,497
Total current liabilities	US$ in thousands	186,393	178,594	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	163,044	158,637	178,311	192,796	131,206
Quick ratio		3.70	4.11	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	2.77	2.95	2.98	2.40	2.76

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 displayed fluctuating trends over the past few quarters. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The quick ratio has generally remained above 2.0, indicating that the company has a comfortable level of liquid assets to cover its short-term liabilities. A quick ratio above 1.0 suggests that the company has an adequate level of easily liquidated assets to cover its short-term obligations.

The ratio peaked at 4.11 in December 2023, reflecting a strong liquidity position at that time. Subsequently, the ratio decreased but remained above 2.0 until September 2022. In the following quarters, the ratio fluctuated within the range of 1.35 to 3.33, indicating some variability in the company's liquidity position.

Overall, a quick ratio above 2.0 in most quarters signals that Cirrus Logic Inc has maintained a solid liquidity position, which is generally a positive indicator of financial health and ability to meet short-term obligations easily. However, analysts may want to further investigate the factors contributing to the fluctuations in the quick ratio to assess the company's overall financial stability.