Ichor Holdings Ltd (ICHR)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 108,669 79,955 86,470 75,495 252,899
Short-term investments US$ in thousands
Receivables US$ in thousands
Total current liabilities US$ in thousands 135,670 98,962 166,292 208,303 162,034
Quick ratio 0.80 0.81 0.52 0.36 1.56

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,669K + $—K + $—K) ÷ $135,670K
= 0.80

The quick ratio of Ichor Holdings Ltd has fluctuated over the past five years. It was 1.56 on December 31, 2020, indicating a strong ability to cover its short-term liabilities with its most liquid assets. However, by December 31, 2021, the quick ratio dropped significantly to 0.36, suggesting a potential liquidity issue or a decrease in liquid assets relative to current liabilities.

In the subsequent years, the quick ratio improved but remained below the ideal threshold of 1.0. By December 31, 2022, the quick ratio was 0.52, indicating a slight improvement in liquidity but still below the industry average.

On December 31, 2023, the quick ratio increased to 0.81, showing a further improvement in liquidity position. This suggests that the company may have managed its current assets more efficiently to meet its short-term obligations.

By the end of December 31, 2024, the quick ratio remained relatively stable at 0.80. While this ratio demonstrates a slight improvement in liquidity from the previous year, it still indicates that Ichor Holdings Ltd may have some room for enhancement in managing its short-term liquidity needs more effectively to meet its current liabilities.