Kulicke and Soffa Industries Inc (KLIC)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	227,147	529,402	555,537	362,788	188,127
Short-term investments	US$ in thousands	350,000	230,000	220,000	377,000	342,000
Receivables	US$ in thousands	193,909	158,601	309,323	421,193	198,640
Total current liabilities	US$ in thousands	183,794	181,551	248,681	351,875	157,893
Quick ratio		4.20	5.06	4.36	3.30	4.62

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($227,147K + $350,000K + $193,909K) ÷ $183,794K
= 4.20

The quick ratio of Kulicke and Soffa Industries Inc has shown some fluctuations over the past five years. The company's quick ratio was highest in 2023 at 5.06 and lowest in 2021 at 3.30. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its current liabilities, which is considered favorable. Kulicke and Soffa Industries Inc has consistently maintained a quick ratio above 1 over the five-year period, indicating a strong ability to meet its short-term financial obligations.

The quick ratio has generally been above 4 throughout the years, peaking in 2023 at 5.06. This indicates a high level of liquidity and a strong financial position, as the company has significant liquid assets relative to its current liabilities. However, the decrease in the quick ratio in 2021 to 3.30 may suggest a slight decrease in liquidity, but the ratio improved again in the subsequent years.

Overall, Kulicke and Soffa Industries Inc's consistent quick ratio above 1 and generally above 4 demonstrates sound liquidity management and financial stability. It suggests that the company is well-positioned to meet its short-term obligations without facing financial difficulties.