MACOM Technology Solutions Holdings Inc (MTSI)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 146,806 | 173,952 | 119,952 | 156,537 | 129,441 |
| Short-term investments | US$ in thousands | 435,082 | 340,574 | 466,580 | 188,365 | 203,711 |
| Receivables | US$ in thousands | 105,700 | 91,253 | 101,551 | 84,570 | 45,884 |
| Total current liabilities | US$ in thousands | 108,184 | 83,525 | 97,214 | 93,044 | 94,950 |
| Quick ratio | 6.36 | 7.25 | 7.08 | 4.62 | 3.99 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($146,806K
+ $435,082K
+ $105,700K)
÷ $108,184K
= 6.36
The quick ratio of MACOM Technology Solutions Holdings Inc has shown a relatively stable and healthy trend over the past five years. The company's quick ratio, which measures its ability to meet short-term obligations with its most liquid assets, has consistently been well above 1, indicating a strong liquidity position.
The quick ratio has ranged from 3.99 in 2020 to 7.25 in 2023, with the most recent figure as of September 30, 2024, standing at 6.36. This suggests that for every dollar of current liabilities, the company had $6.36 of quick assets available to cover these obligations.
The consistently high quick ratios reflect the company's ability to quickly convert its current assets into cash to meet its short-term financial commitments. A quick ratio above 1 is generally considered healthy, and MACOM's ratios well above this threshold indicate a strong liquidity position and the ability to efficiently manage its short-term financial obligations.
Overall, the trend in MACOM Technology Solutions Holdings Inc's quick ratio indicates a sound financial position and the company's ability to weather short-term financial challenges.
Peer comparison
Sep 30, 2024