IPG Photonics Corporation (IPGP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 514,674 | 698,209 | 709,105 | 876,231 | 680,070 |
| Short-term investments | US$ in thousands | 662,807 | 479,374 | 805,400 | 514,835 | 502,546 |
| Receivables | US$ in thousands | 245,091 | 252,281 | 299,111 | 334,214 | 277,352 |
| Total current liabilities | US$ in thousands | 214,861 | 274,646 | 313,433 | 214,578 | 191,904 |
| Quick ratio | 6.62 | 5.21 | 5.79 | 8.04 | 7.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($514,674K
+ $662,807K
+ $245,091K)
÷ $214,861K
= 6.62
The quick ratio of IPG Photonics Corp has shown a fluctuating trend over the past five years. In 2023, the quick ratio increased to 6.80 from 5.38 in 2022, indicating a stronger ability to cover its short-term obligations with its most liquid assets. However, this increase followed a decrease in the quick ratio from 6.02 in 2021 to 5.38 in 2022, suggesting a temporary weakening in the company's liquidity position.
Comparing the current quick ratio to previous years, it is lower than the ratio of 8.30 in 2020 and 7.90 in 2019, indicating a decrease in the company's immediate liquidity levels. Despite this, the quick ratio remains at a relatively high level in 2023, which suggests that IPG Photonics Corp can meet its short-term obligations comfortably using its liquid assets.
Overall, while the quick ratio has fluctuated over the years, the company's current level of 6.80 indicates a strong liquidity position in 2023. It is important for stakeholders to continue monitoring this ratio to ensure that the company maintains adequate liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2023