Micron Technology Inc (MU)
Quick ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Aug 29, 2024 | May 31, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | May 31, 2023 | Mar 2, 2023 | Feb 28, 2023 | Dec 1, 2022 | Nov 30, 2022 | Sep 1, 2022 | Aug 31, 2022 | Jun 2, 2022 | May 31, 2022 | Mar 3, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,552,000 | 6,693,000 | 7,041,000 | 7,041,000 | 7,040,000 | 7,594,000 | 6,796,000 | 8,075,000 | 8,577,000 | 9,298,000 | 9,298,000 | 9,798,000 | 9,798,000 | 9,574,000 | 9,574,000 | 8,262,000 | 8,262,000 | 9,157,000 | 9,157,000 | 9,116,000 |
| Short-term investments | US$ in thousands | 663,000 | 895,000 | 1,065,000 | 1,065,000 | 1,339,000 | 785,000 | 2,210,000 | 973,000 | 1,017,000 | 1,054,000 | 1,054,000 | 1,020,000 | 1,020,000 | 1,007,000 | 1,007,000 | 1,069,000 | 1,069,000 | 1,070,000 | 1,070,000 | 1,006,000 |
| Receivables | US$ in thousands | — | — | — | 6,615,000 | — | 5,131,000 | — | — | — | 2,429,000 | — | 2,278,000 | — | 3,318,000 | — | 5,130,000 | — | 6,229,000 | — | 5,384,000 |
| Total current liabilities | US$ in thousands | 7,877,000 | 9,015,000 | 9,248,000 | 9,248,000 | 6,840,000 | 6,840,000 | 6,259,000 | 5,962,000 | 4,765,000 | 5,104,000 | 5,104,000 | 5,255,000 | 5,255,000 | 6,525,000 | 6,525,000 | 7,539,000 | 7,539,000 | 7,009,000 | 7,009,000 | 6,918,000 |
| Quick ratio | 1.04 | 0.84 | 0.88 | 1.59 | 1.22 | 1.98 | 1.44 | 1.52 | 2.01 | 2.50 | 2.03 | 2.49 | 2.06 | 2.13 | 1.62 | 1.92 | 1.24 | 2.35 | 1.46 | 2.24 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,552,000K
+ $663,000K
+ $—K)
÷ $7,877,000K
= 1.04
The quick 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 of 1 indicates that a company has just enough liquid assets to cover its current liabilities.
Analyzing the quick ratio of Micron Technology Inc over the provided data points, we can observe fluctuations in the ratio. The quick ratio ranged from a low of 0.84 on November 30, 2024, to a high of 2.50 on June 1, 2023. This indicates some variability in the company's ability to meet its short-term obligations with its liquid assets.
Generally, a quick ratio above 1 is considered healthy, as it suggests that the company has an adequate level of liquid assets to cover its current liabilities. In this case, Micron Technology Inc generally maintained a quick ratio above 1 throughout the periods, with the lowest ratio dropping to 0.84. This may raise concerns about the company's short-term liquidity position during that period.
It is important to assess the reasons behind the fluctuations in the quick ratio to understand the company's liquidity position and its ability to manage short-term obligations effectively. Further analysis of the company's financial statements and business operations may provide insights into the factors influencing the quick ratio trends.
Peer comparison
Feb 28, 2025