IPG Photonics Corporation (IPGP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 620,040 | 514,674 | 698,209 | 709,105 | 876,231 |
| Short-term investments | US$ in thousands | 310,152 | 662,807 | 479,374 | 805,400 | 514,835 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 205,019 | 214,861 | 274,646 | 313,433 | 214,578 |
| Quick ratio | 4.54 | 5.48 | 4.29 | 4.83 | 6.48 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($620,040K
+ $310,152K
+ $—K)
÷ $205,019K
= 4.54
The quick ratio of IPG Photonics Corporation has shown a generally strong trend over the past five years. The ratio has ranged from a high of 6.48 in December 2020 to a low of 4.29 in December 2022. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations.
IPG Photonics Corporation's quick ratio has consistently remained well above 1 over the years, indicating a strong liquidity position. The slight fluctuations in the ratio suggest some variations in the company's ability to meet its short-term obligations without relying heavily on its inventory. Overall, the company appears to have a solid ability to meet its short-term financial obligations using its readily available liquid assets.
Peer comparison
Dec 31, 2024