MACOM Technology Solutions Holdings Inc (MTSI)

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	146,806	117,304	114,990	163,586	173,952	121,520	136,573	126,155	119,952	132,170	127,575	273,396	156,537	144,134	105,540	128,728	129,441	131,870	120,735	108,184
Short-term investments	US$ in thousands	435,082	404,196	361,423	299,705	340,574	466,072	440,735	468,577	466,580	404,169	375,449	204,314	188,365	164,766	162,554	226,044	203,711	133,248	100,847	101,879
Receivables	US$ in thousands	105,700	106,776	120,222	101,075	91,253	105,893	121,823	112,039	101,551	—	—	97,444	84,570	—	—	—	45,884	—	—	—
Total current liabilities	US$ in thousands	108,184	103,089	108,853	102,869	83,525	210,637	91,249	93,784	97,214	101,433	94,323	97,191	93,044	87,104	88,573	98,156	94,950	95,017	92,964	94,639
Quick ratio		6.36	6.09	5.48	5.49	7.25	3.29	7.66	7.54	7.08	5.29	5.33	5.92	4.62	3.55	3.03	3.61	3.99	2.79	2.38	2.22

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, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Based on the data provided for MACOM Technology Solutions Holdings Inc over several quarters, we observe fluctuations in the quick ratio. The quick ratio has shown a generally upward trend from the end of 2019 to the third quarter of 2023, indicating an improvement in the company's liquidity position during this period.

In the recent quarters, the quick ratio has remained relatively high, with figures ranging from 5.48 to 6.36. This suggests that MACOM Technology Solutions Holdings Inc has maintained a strong ability to meet its short-term obligations using its quick assets.

Overall, the consistent high quick ratio values indicate that the company has a comfortable liquidity position, which may suggest effective management of working capital and a reduced risk of financial distress in the short term. However, it is important to consider other factors and ratios in conjunction with the quick ratio to gain a comprehensive understanding of MACOM Technology Solutions Holdings Inc's financial health.