MaxLinear Inc (MXL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	187,288	187,353	130,572	148,901	92,708
Short-term investments	US$ in thousands	0	18,529	0	—	—
Total current liabilities	US$ in thousands	222,129	341,086	207,395	233,661	66,562
Cash ratio		0.84	0.60	0.63	0.64	1.39

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($187,288K + $0K) ÷ $222,129K
= 0.84

The cash ratio of MaxLinear Inc has exhibited fluctuations over the past five years. As of December 31, 2023, the cash ratio stood at 0.97, representing an improvement from the previous year. This indicates that the company held $0.97 in cash and cash equivalents for every $1 of current liabilities, suggesting a relatively stronger ability to meet its short-term obligations using available cash resources.

Comparing this with the prior years, the cash ratio was 0.68 in 2022, 0.74 in 2021, 0.70 in 2020, and notably higher at 1.49 in 2019. The decrease in the cash ratio from 2019 to 2020 may indicate a change in the company's liquidity position. However, the subsequent increase in 2023 reflects a potential improvement in the company's cash management or its ability to generate additional cash inflows compared to the prior year.

Overall, while the cash ratio has fluctuated over the years, the upward trend in 2023 suggests the company's enhanced liquidity position, which could be indicative of effective cash management or improved cash generation capabilities. An analysis of the company's cash flow and working capital trends would provide further insights into the factors driving these changes in the cash ratio.