Photronics Inc (PLAB)

Current ratio

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Total current assets	US$ in thousands	807,677	785,450	772,211	720,116	700,816	644,652	678,055	630,345	597,779	550,616	530,464	495,608	506,112	500,139	510,641	472,271	440,904	427,527	420,467	371,968
Total current liabilities	US$ in thousands	185,289	185,223	190,652	185,168	199,331	193,797	197,114	186,471	191,094	176,148	167,617	159,287	145,531	142,939	175,309	153,372	157,654	151,954	159,274	139,284
Current ratio		4.36	4.24	4.05	3.89	3.52	3.33	3.44	3.38	3.13	3.13	3.16	3.11	3.48	3.50	2.91	3.08	2.80	2.81	2.64	2.67

January 28, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $807,677K ÷ $185,289K
= 4.36

The current ratio of Photronics, Inc. has been steadily increasing over the past few quarters, reflecting a strong liquidity position. As of Q1 2024, the current ratio stands at 4.36, indicating that the company has $4.36 in current assets for every $1 in current liabilities. This suggests that Photronics, Inc. has a significant level of current assets that can be easily converted into cash to meet its short-term obligations.

The upward trend in the current ratio from Q2 2023 to Q1 2024 indicates an improvement in the company's ability to cover its short-term liabilities with its current assets. This could be attributed to effective management of current assets, such as cash, accounts receivable, and inventory, as well as prudent management of current liabilities.

Overall, the increasing current ratio reflects a strong financial position for Photronics, Inc., indicating that the company is well-positioned to meet its short-term financial obligations and has a solid liquidity position.