MaxLinear Inc (MXL)

Current ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	488,025	508,607	554,491	593,586	563,124	562,975	538,624	454,576	404,104	418,280	378,108	344,980	361,718	350,053	190,578	180,609	181,770	165,120	172,650	179,320
Total current liabilities	US$ in thousands	222,129	232,910	241,729	300,162	341,086	351,318	316,081	234,795	207,395	231,274	211,789	197,637	233,661	211,374	69,964	62,428	66,562	63,119	66,918	73,483
Current ratio		2.20	2.18	2.29	1.98	1.65	1.60	1.70	1.94	1.95	1.81	1.79	1.75	1.55	1.66	2.72	2.89	2.73	2.62	2.58	2.44

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $488,025K ÷ $222,129K
= 2.20

The current ratio measures a company's ability to meet its short-term financial obligations. It is calculated by dividing current assets by current liabilities. MaxLinear Inc's current ratio has fluctuated over the past eight quarters, ranging from 1.60 to 2.29. A ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong ability to cover its short-term obligations.

The current ratio peaked at 2.29 in the June 30, 2023, quarter, indicating a substantial increase in current assets relative to current liabilities. This may reflect efficient management of working capital or an increase in liquid assets. Conversely, the lowest ratio of 1.60 in the September 30, 2022, quarter suggests a reduced ability to cover short-term obligations.

Overall, the trend indicates that MaxLinear Inc has maintained a current ratio above 1, demonstrating a generally healthy liquidity position. However, the fluctuations in the ratio should be carefully monitored to ensure the company's continued ability to meet its short-term financial commitments.