IPG Photonics Corporation (IPGP)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	620,040	883,871	720,540	496,452	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
Short-term investments	US$ in thousands	310,152	135,444	343,363	643,655	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
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	205,019	194,182	190,483	192,127	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
Quick ratio		4.54	5.25	5.59	5.93	5.48	5.16	4.80	4.29	4.29	4.17	3.91	5.06	4.83	5.19	5.85	6.73	6.48	6.46	6.40	6.12

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 stable trend over the past five years, fluctuating within a relatively narrow range. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

From March 31, 2020, to December 31, 2021, the quick ratio improved steadily, reaching a peak of 6.73 on March 31, 2021. This indicates that the company had a comfortable level of liquid assets to cover its current liabilities during this period.

However, from June 30, 2021, to June 30, 2022, there was a noticeable decline in the quick ratio, dropping to 3.91. This suggests a potential strain on the company's ability to meet its short-term obligations with its readily available assets.

Subsequently, the quick ratio recovered slightly by September 30, 2022, and remained relatively stable through December 31, 2024, ranging between 4.17 and 5.93. While the quick ratio did not return to the peak levels seen earlier, the company maintained a reasonable ability to cover its short-term liabilities with its liquid assets during this period.

Overall, the trend in IPG Photonics Corporation's quick ratio indicates a generally healthy liquidity position, although there were fluctuations that may warrant further monitoring to ensure the company can continue meeting its short-term obligations effectively.