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.