Kulicke and Soffa Industries Inc (KLIC)

Quick ratio

		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	Dec 31, 2019
Cash	US$ in thousands	227,147	366,917	359,748	424,660	529,402	401,806	389,102	550,613	555,537	445,781	460,453	441,490	362,788	387,999	257,333	239,670	188,127	321,775	392,307	497,374
Short-term investments	US$ in thousands	350,000	235,000	275,000	285,000	230,000	310,000	345,000	245,000	220,000	300,000	230,000	367,000	377,000	247,000	307,000	337,000	342,000	194,000	248,000	119,000
Receivables	US$ in thousands	193,909	200,320	194,819	184,400	158,601	198,107	—	200,337	309,323	—	—	—	421,193	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	183,794	165,977	165,736	181,288	181,551	196,776	195,751	221,055	248,681	274,039	274,889	343,805	351,875	308,260	259,572	200,690	157,893	142,804	262,037	202,203
Quick ratio		4.20	4.83	5.01	4.93	5.06	4.62	3.75	4.51	4.36	2.72	2.51	2.35	3.30	2.06	2.17	2.87	3.36	3.61	2.44	3.05

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 a generally improving trend over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio has been consistently above 1, indicating that the company has ample liquid assets to cover its current liabilities. The current quick ratio of around 4.20 as of September 30, 2024, suggests that the company has $4.20 in liquid assets available to cover each $1 of current liabilities, indicating a strong liquidity position.

The increasing trend in the quick ratio from 2020 to 2024 reflects the company's efforts to maintain a healthy liquidity position and efficiently manage its current obligations. A quick ratio above 1 is generally considered favorable, with higher ratios indicating a stronger ability to meet short-term obligations without relying heavily on selling inventory.

It's important to note that while a high quick ratio demonstrates good liquidity, an extremely high ratio may indicate that the company is holding onto too many liquid assets that could be better utilized elsewhere in the business. Additionally, fluctuations in the quick ratio should be further investigated to understand the underlying reasons driving the changes.