NXP Semiconductors NV (NXPI)
Quick 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 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 | 1,045,000 | 3,537,000 | 2,789,000 |
| Short-term investments | US$ in thousands | 409,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 894,000 | 939,000 | 1,061,000 | — | 960,000 | — | — | — | 923,000 | — | — | — | 765,000 | — | — | — | 667,000 | — | 792,000 |
| 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 | 1,791,000 | 3,126,000 | 3,385,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,862,000K
+ $409,000K
+ $894,000K)
÷ $4,111,000K
= 1.26
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that the company has enough liquid assets to cover its short-term liabilities.
Analyzing the quick ratio of NXP Semiconductors NV over the past eight quarters, we observe some fluctuations. The quick ratio ranged from 1.28 to 1.65 during this period, showing variability in the company's ability to meet its short-term obligations.
In the latest quarter, Q4 2023, the quick ratio was 1.39, indicating that NXP Semiconductors NV has $1.39 in highly liquid assets available to cover each dollar of its current liabilities. This suggests that the company has a healthy liquidity position to meet its short-term financial obligations.
It's worth noting that the quick ratio has remained above 1 in all quarters, signaling that NXP Semiconductors NV has consistently maintained a sufficient level of liquid assets relative to its short-term liabilities. However, the fluctuations in the quick ratio imply potential changes in the company's liquidity management or operating efficiency over the analyzed period.
Overall, the trend of NXP Semiconductors NV's quick ratio indicates a generally stable liquidity position, but it is important to continue monitoring this ratio to ensure the company's ability to meet its short-term obligations remains intact.
Peer comparison
Dec 31, 2023