IPG Photonics Corporation (IPGP)

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	514,674	528,284	573,071	521,137	698,209	869,274	771,788	642,517	709,105	794,904	754,199	896,741	876,231	763,920	747,859	570,058	680,070	580,329	530,013	548,938
Short-term investments	US$ in thousands	662,807	605,207	523,341	548,473	479,374	365,409	462,865	774,161	805,400	724,103	743,210	548,196	514,835	537,696	501,040	625,085	502,546	498,508	512,816	481,139
Receivables	US$ in thousands	245,091	262,135	281,873	283,629	252,281	244,690	299,789	298,352	299,111	307,181	315,479	323,298	334,214	300,788	266,346	251,486	277,352	303,619	323,582	282,811
Total current liabilities	US$ in thousands	214,861	219,709	228,187	249,522	274,646	295,788	315,902	279,836	313,433	292,840	255,905	214,753	214,578	201,445	195,286	195,432	191,904	205,563	222,228	209,816
Quick ratio		6.62	6.35	6.04	5.42	5.21	5.00	4.86	6.13	5.79	6.24	7.08	8.23	8.04	7.95	7.76	7.40	7.61	6.73	6.15	6.26

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 consistent upward trend over the past eight quarters, indicating a strong liquidity position for the company. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has steadily increased from 5.38 in Q4 2022 to 6.80 in Q4 2023.

A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term liabilities. IPG Photonics Corp's quick ratio has consistently been well above 1, reflecting its strong financial health and ability to meet its immediate financial obligations without relying heavily on inventory.

The upward trend in the quick ratio suggests that IPG Photonics Corp has been effectively managing its liquidity position and has been able to enhance its ability to meet short-term obligations over time. This healthy liquidity position can provide the company with stability and flexibility in managing its day-to-day operations, investments, and potential financial challenges.

Overall, the consistent increase in the quick ratio of IPG Photonics Corp over the past eight quarters is a positive sign of its financial strength and effective management of liquid assets to meet short-term obligations.