Ichor Holdings Ltd (ICHR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	79,955	86,470	75,495	252,899	60,612
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	66,721	136,321	142,990	100,977	84,849
Total current liabilities	US$ in thousands	98,962	166,292	208,303	162,034	163,867
Quick ratio		1.48	1.34	1.05	2.18	0.89

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($79,955K + $—K + $66,721K) ÷ $98,962K
= 1.48

The quick ratio of Ichor Holdings Ltd has shown some fluctuations over the past five years.

In 2019, the quick ratio was 0.89, indicating that the company may have had difficulties meeting its short-term obligations with its most liquid assets at that time. However, the quick ratio improved significantly in 2020 to 2.18, suggesting that the company had more than enough liquid assets to cover its current liabilities.

The quick ratio decreased in 2021 to 1.05, which could indicate a slight decline in the company's ability to meet its short-term obligations with its quick assets alone.

Subsequently, the quick ratio increased in 2022 to 1.34, which is a positive sign of improvement in financial liquidity compared to the previous year.

In the most recent year, 2023, the quick ratio further improved to 1.48, indicating that the company had a comfortable margin to cover its current liabilities with its quick assets.

Overall, the trend in the quick ratio over the five-year period shows some variability but generally suggests that Ichor Holdings Ltd has maintained a reasonable level of liquidity to meet its short-term obligations, with peaks and troughs reflecting different levels of efficiency in managing its current assets and liabilities.