Photronics Inc (PLAB)

Quick 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
Cash	US$ in thousands	508,518	499,292	448,479	367,485	334,792	319,680	380,833	329,282	314,195	276,670	283,249	255,965	278,539	278,665	260,597	237,790	218,309	206,530	197,243	167,066
Short-term investments	US$ in thousands	12,996	12,915	27,325	45,431	39,199	38,820	—	—	—	0	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	232,158	221,832	206,128	214,464	220,692	200,861	206,495	—	170,673	198,660	—	—	139,708	151,009	—	—	—	—	—	—
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
Quick ratio		4.07	3.96	3.58	3.39	2.98	2.89	2.98	1.77	2.54	2.70	1.69	1.61	2.87	3.01	1.49	1.55	1.38	1.36	1.24	1.20

January 28, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($508,518K + $12,996K + $232,158K) ÷ $185,289K
= 4.07

The quick ratio of Photronics, Inc. has demonstrated a generally positive trend over the past eight quarters. The quick ratio has consistently been above 3, indicating that the company has a strong ability to meet its short-term obligations using its most liquid assets. This trend suggests that Photronics, Inc. has maintained a healthy level of liquidity and may be well-positioned to cover its current liabilities in the near term without relying heavily on inventory. The increasing quick ratio over the quarters reflects a strengthening liquidity position and potentially effective management of working capital. However, it is essential to continue monitoring the quick ratio to ensure the company maintains sufficient liquidity to support its operations and growth.