Micron Technology Inc (MU)
Quick ratio
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,041,000 | 7,041,000 | 8,577,000 | 8,262,000 | 8,262,000 |
| Short-term investments | US$ in thousands | 1,065,000 | 1,065,000 | 1,017,000 | 1,069,000 | 1,069,000 |
| Receivables | US$ in thousands | — | 6,615,000 | — | 5,130,000 | — |
| Total current liabilities | US$ in thousands | 9,248,000 | 9,248,000 | 4,765,000 | 7,539,000 | 7,539,000 |
| Quick ratio | 0.88 | 1.59 | 2.01 | 1.92 | 1.24 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,041,000K
+ $1,065,000K
+ $—K)
÷ $9,248,000K
= 0.88
The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A ratio of 1 or higher is generally considered healthy, as it indicates that a company has enough liquid assets to cover its short-term liabilities.
Based on the data provided, Micron Technology Inc's quick ratio has shown some fluctuation over the years. In August 31, 2022, the quick ratio was 1.24, indicating that the company had $1.24 in liquid assets for every $1 of current liabilities. This suggests a relatively healthy liquidity position.
The quick ratio improved significantly to 1.92 by September 1, 2022, and further increased to 2.01 by August 31, 2023. These higher ratios reflect an even stronger ability to cover short-term obligations with liquid assets.
However, the quick ratio declined to 1.59 by August 29, 2024, which is still above 1 but shows a slight weakening in liquidity compared to previous years. Notably, on August 31, 2024, the quick ratio dropped to 0.88, falling below 1. This could indicate that the company may be facing challenges in meeting its short-term obligations with its current level of liquid assets.
Overall, while the quick ratio for Micron Technology Inc has fluctuated over the years, it has generally been above 1, suggesting that the company has maintained a reasonable level of liquidity to meet its short-term liabilities. However, the declining trend towards the end of the period raises some concerns and warrants further analysis to understand the underlying reasons for the decrease in liquidity.
Peer comparison
Aug 31, 2024