Micron Technology Inc (MU)
Quick ratio
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,041,000 | 8,577,000 | 8,262,000 | 7,763,000 | 7,624,000 |
| Short-term investments | US$ in thousands | 1,065,000 | 1,017,000 | 1,069,000 | 870,000 | 518,000 |
| Receivables | US$ in thousands | 6,615,000 | 2,443,000 | 5,130,000 | 5,311,000 | 3,912,000 |
| Total current liabilities | US$ in thousands | 9,248,000 | 4,765,000 | 7,539,000 | 6,424,000 | 6,635,000 |
| Quick ratio | 1.59 | 2.53 | 1.92 | 2.17 | 1.82 |
August 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,041,000K
+ $1,065,000K
+ $6,615,000K)
÷ $9,248,000K
= 1.59
The quick ratio of Micron Technology Inc has exhibited some fluctuations over the past five years, ranging from 1.59 in August 2024 to 2.53 in August 2023. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, with higher ratios generally seen as more favorable.
The declining trend of the quick ratio from 2.53 in August 2023 to 1.59 in August 2024 may indicate a potential decrease in liquidity and the company's ability to meet its short-term obligations. However, the quick ratio remained above 1 throughout the five-year period, suggesting that Micron Technology Inc generally maintained a strong liquidity position relative to its current liabilities.
Overall, while the fluctuations in the quick ratio should be monitored, the company's quick ratio indicates a relatively healthy liquidity position during the period under review.
Peer comparison
Aug 29, 2024