NXP Semiconductors NV (NXPI)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.91 | 1.92 | 1.82 | 1.75 | 2.12 | 2.08 | 2.15 | 1.85 | 2.13 | 1.37 | 2.26 | 1.78 | 2.14 | 1.64 | 1.74 | 1.77 | 1.82 | 1.90 | 1.54 |
| Quick ratio | 1.26 | 1.26 | 1.21 | 0.93 | 1.47 | 1.17 | 1.21 | 0.94 | 1.53 | 0.67 | 1.25 | 0.81 | 1.51 | 1.05 | 1.09 | 0.59 | 0.96 | 1.13 | 1.06 |
| 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 | 0.58 | 1.13 | 0.82 |
NXP Semiconductors NV has shown relatively stable liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged between 1.75 and 2.12. This indicates that NXP's current assets have typically been sufficient to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has fluctuated between 1.28 and 1.65. This suggests that NXP has a slightly lower ability to cover its short-term obligations without relying on inventory.
Looking at the cash ratio, which provides insight into the company's ability to cover its current liabilities with its cash and cash equivalents, the values have varied between 1.02 and 1.31. This indicates that NXP has maintained a solid cash position relative to its current liabilities.
Overall, NXP Semiconductors NV has demonstrated sound liquidity levels, with current assets typically exceeding current liabilities. However, slight fluctuations in the quick and cash ratios over the observed period suggest the need for ongoing monitoring to ensure continued liquidity strength.
See also:
NXP Semiconductors NV Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 86.44 | 102.21 | 102.80 | 62.65 | 64.85 | 3.06 | 0.00 | -4.12 | 25.85 | 2.47 | -3.89 | 1.84 | 35.68 | 31.52 | 43.87 | 27.83 |
The cash conversion cycle of NXP Semiconductors NV has shown fluctuations over the past eight quarters. It measures the amount of time, in days, it takes for the company to convert its investment in inventory and accounts receivable into cash flows from sales.
In Q4 2022, the company had the lowest cash conversion cycle of 24.91 days, indicating efficient management of inventory and accounts receivable, leading to quicker cash conversion. However, in Q3 2023, the cash conversion cycle peaked at 102.21 days, suggesting a slowdown in the cash conversion process.
Overall, NXP Semiconductors NV needs to focus on optimizing its inventory and accounts receivable management to reduce the cash conversion cycle, improve liquidity, and enhance overall financial performance. Variations in the cash conversion cycle can also reflect changes in the company's operational efficiency and effectiveness in managing working capital.