Harmonic Inc (HLIT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 84,269 | 89,586 | 133,431 | 98,645 | 93,058 |
| Short-term investments | US$ in thousands | — | 0 | — | — | — |
| Receivables | US$ in thousands | 141,531 | 108,427 | 88,529 | 66,727 | 95,843 |
| Total current liabilities | US$ in thousands | 272,394 | 322,072 | 224,461 | 147,295 | 191,899 |
| Quick ratio | 0.83 | 0.61 | 0.99 | 1.12 | 0.98 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($84,269K
+ $—K
+ $141,531K)
÷ $272,394K
= 0.83
The quick ratio of Harmonic, Inc. has shown fluctuations over the past five years. In 2023, the quick ratio stands at 0.91, indicating that the company has $0.91 in quick assets available to cover each $1 of current liabilities. This implies a slight improvement compared to the previous year's 0.70.
The quick ratio was highest in 2020 at 1.38, which suggests a strong ability to cover short-term obligations with liquid assets. Subsequently, the ratio decreased in 2021 and 2022 before seeing a slight recovery in 2023.
Overall, while the current quick ratio of Harmonic, Inc. is below 1, indicating potential liquidity concerns, the trend shows a level of volatility in the company's ability to meet its short-term obligations efficiently. Management should keep a close eye on liquidity management to ensure the company can meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2023