MaxLinear Inc (MXL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 187,288 | 187,353 | 130,572 | 148,901 | 92,708 |
| Short-term investments | US$ in thousands | 0 | 18,529 | 0 | — | — |
| Receivables | US$ in thousands | 170,619 | 170,971 | 119,724 | 67,442 | 50,411 |
| Total current liabilities | US$ in thousands | 222,129 | 341,086 | 207,395 | 233,661 | 66,562 |
| Quick ratio | 1.61 | 1.10 | 1.21 | 0.93 | 2.15 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,288K
+ $0K
+ $170,619K)
÷ $222,129K
= 1.61
The quick ratio, also known as the acid-test ratio, provides insight into a company's short-term liquidity by measuring its ability to meet immediate obligations using its most liquid assets. MaxLinear Inc's quick ratio has fluctuated over the past five years, ranging from 1.13 to 2.25.
In 2023, the quick ratio improved to 1.74 from 1.18 in 2022, indicating a stronger ability to cover short-term liabilities with its liquid assets. This may suggest improved efficiency in managing cash and short-term investments, potentially allowing the company to meet its obligations more comfortably.
The quick ratio's peak at 2.25 in 2019 indicated a significantly higher level of liquidity, potentially reflecting a period of strong cash position or low short-term liabilities relative to liquid assets. However, the subsequent decline in the ratio in the following years may indicate changes in liquidity management or shifts in the composition of current assets.
Overall, the varying quick ratios over the years suggest fluctuations in MaxLinear Inc's ability to meet short-term obligations with readily available assets, highlighting the importance of assessing the company's liquidity position within the broader context of its financial performance and industry benchmarks.
Peer comparison
Dec 31, 2023