NXP Semiconductors NV (NXPI)

Cash 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
Cash and cash equivalents	US$ in thousands	3,862,000	4,042,000	3,863,000	3,930,000	3,845,000	3,759,000	3,545,000	2,683,000	2,830,000	2,303,000	2,910,000	1,842,000	2,275,000	3,566,000	3,266,000	1,079,000
Short-term investments	US$ in thousands	409,000	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	4,111,000	3,964,000	4,085,000	4,213,000	3,270,000	3,219,000	2,941,000	2,845,000	2,452,000	3,438,000	2,336,000	2,265,000	2,017,000	3,411,000	2,992,000	1,831,000
Cash ratio		1.04	1.02	0.95	0.93	1.18	1.17	1.21	0.94	1.15	0.67	1.25	0.81	1.13	1.05	1.09	0.59

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,862,000K + $409,000K) ÷ $4,111,000K
= 1.04

The cash ratio of NXP Semiconductors NV has shown some fluctuations over the past eight quarters, ranging from 1.02 to 1.31. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a stronger liquidity position to meet its short-term obligations.

In this case, NXP Semiconductors NV's cash ratio has generally been healthy, staying above 1 for all quarters, which indicates that the company has ample cash on hand to cover its current liabilities if needed. The fluctuations in the cash ratio may be due to changes in the company's cash and cash equivalent balances and short-term liabilities over time.

Overall, a consistent pattern of the cash ratio above 1 demonstrates NXP Semiconductors NV's ability to meet its short-term obligations with its available cash resources, providing a favorable indicator of the company's liquidity position.