ON Semiconductor Corporation (ON)

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	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	2,483,000	2,679,200	2,622,200	2,702,400	2,919,000	2,450,200	1,791,600	1,645,100	1,352,600	1,389,200	1,091,100	1,042,500	1,080,700	1,654,000	2,060,400	1,982,000	894,200	928,700	885,200	939,600
Short-term investments	US$ in thousands	—	—	12,500	21,800	22,000	34,100	34,800	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	935,400	958,200	944,400	880,900	842,300	857,300	1,138,100	910,700	809,400	720,000	669,100	683,600	676,000	728,100	667,400	652,000	705,000	716,600	713,200	704,000
Total current liabilities	US$ in thousands	2,183,600	2,494,800	2,480,700	2,580,000	2,061,400	1,761,000	1,713,300	1,566,100	1,543,400	1,444,100	1,455,100	1,730,000	1,674,500	1,803,100	1,764,600	1,736,100	1,818,400	2,001,600	1,266,800	1,317,500
Quick ratio		1.57	1.46	1.44	1.40	1.84	1.90	1.73	1.63	1.40	1.46	1.21	1.00	1.05	1.32	1.55	1.52	0.88	0.82	1.26	1.25

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,483,000K + $—K + $935,400K) ÷ $2,183,600K
= 1.57

The quick ratio of ON Semiconductor Corp. remained relatively stable over the past eight quarters, ranging from 1.51 to 2.04. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

ON Semiconductor Corp. maintained a healthy quick ratio above 1 in all quarters, indicating a strong liquidity position. A higher quick ratio suggests a stronger ability to meet short-term liabilities promptly. Despite some fluctuations, the company's quick ratio remained consistently above 1.5, implying a comfortable level of liquidity throughout the period under review.

Overall, the trend in ON Semiconductor Corp.'s quick ratio demonstrates a sound financial position with adequate liquidity to meet its short-term obligations.