Ichor Holdings Ltd (ICHR)

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	79,955	75,933	84,608	68,837	86,470	56,463	46,064	34,516	75,495	128,038	141,714	242,946	252,899	78,919	56,969	41,583	60,612	30,175	41,456	31,611
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	98,706	104,951	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	66,721	103,350	95,760	122,693	136,321	183,297	—	—	142,990	121,680	119,108	108,674	100,977	104,121	104,859	87,573	84,849	77,140	41,571	53,897
Total current liabilities	US$ in thousands	98,962	115,668	106,404	118,225	166,292	205,063	198,920	194,066	208,303	180,973	197,738	183,084	162,034	148,299	155,357	151,437	163,867	115,002	85,933	90,490
Quick ratio		1.48	1.55	1.70	1.62	1.34	1.17	0.23	0.18	1.05	1.93	1.85	1.92	2.18	1.23	1.04	0.85	0.89	0.93	0.97	0.94

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 fluctuations over the periods analyzed. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations. Ichor Holdings' quick ratio has generally been above 1, indicating a healthy liquidity position.

The quick ratio improved from 1.34 in December 2022 to 1.70 in June 2023, reflecting an increase in the company's ability to meet its short-term liabilities using its most liquid assets. However, there was a significant decline in the quick ratio to 0.23 in June 2022, which may indicate potential liquidity challenges during that period.

Overall, the trend in the quick ratio suggests that Ichor Holdings has managed its liquidity well, with most periods showing a ratio comfortably above 1, indicating a strong ability to cover short-term obligations. It is important for the company to continue monitoring and managing its liquidity position to ensure it can meet its financial obligations in a timely manner.