FormFactor Inc (FORM)

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	177,812	108,731	97,981	112,360	109,130	120,602	136,395	167,182	151,010	153,781	160,273	173,616	187,225	185,368	199,926	169,607	144,545	122,946	124,810	105,759
Short-term investments	US$ in thousands	150,507	135,693	138,943	123,891	129,006	130,991	129,919	129,174	125,055	110,898	95,962	94,093	67,810	56,100	61,177	69,759	76,327	77,025	52,071	54,086
Receivables	US$ in thousands	102,957	88,965	94,013	—	88,143	110,497	107,726	113,505	115,541	105,807	108,265	103,500	107,603	96,946	86,616	90,100	97,868	85,228	71,813	82,753
Total current liabilities	US$ in thousands	131,095	129,526	124,103	128,170	149,667	163,756	159,585	154,657	148,754	160,000	153,851	146,649	154,571	136,274	123,236	117,494	136,560	141,907	102,810	100,643
Quick ratio		3.29	2.57	2.67	1.84	2.18	2.21	2.34	2.65	2.63	2.32	2.37	2.53	2.35	2.48	2.82	2.80	2.33	2.01	2.42	2.41

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($177,812K + $150,507K + $102,957K) ÷ $131,095K
= 3.29

The quick ratio of FormFactor Inc has shown a generally positive trend over the past years, indicating the company's ability to meet its short-term obligations using its most liquid assets. The ratio has consistently been above 1, reflecting the company's strong liquidity position.

In the most recent period, as of December 31, 2023, the quick ratio stands at 3.29, indicating that the company has 3.29 times more liquid assets available to cover its current liabilities. This suggests a strong ability to meet its short-term obligations without relying heavily on inventory or other less liquid assets.

The trend over the past several quarters shows fluctuations in the quick ratio but generally staying above 2, which is a positive sign for the company's financial health. Investors and creditors typically view a quick ratio above 1 as a good indicator of a company's short-term financial stability.

Overall, the quick ratio analysis suggests that FormFactor Inc has maintained a healthy liquidity position, which bodes well for its financial stability and ability to weather any short-term financial challenges.