Photronics Inc (PLAB)

Quick ratio

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	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
Cash	US$ in thousands	598,485	537,331	493,905	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
Short-term investments	US$ in thousands	42,184	69,046	65,955	12,996	12,915	27,325	45,431	39,199	38,820	—	—	—	0	—	—	—	—	—	—	—
Receivables	US$ in thousands	232,729	227,317	221,048	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	183,811	191,126	195,567	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
Quick ratio		4.75	4.36	3.99	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

October 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($598,485K + $42,184K + $232,729K) ÷ $183,811K
= 4.75

The quick ratio of Photronics Inc has shown fluctuations over the past few quarters, ranging from a low of 1.38 to a high of 4.75. This ratio measures the company's ability to meet short-term obligations using its most liquid current assets, excluding inventory.

A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities. The company's quick ratio has generally been strong, consistently above 1 in all periods. A quick ratio above 1.5 is often considered healthy, and Photronics Inc has maintained a quick ratio above this threshold in most quarters.

The upward trend seen in the quick ratio over the recent quarters reflects an improvement in the company's liquidity position, indicating a stronger ability to meet its short-term financial obligations without relying heavily on inventory. This trend suggests that Photronics Inc has been managing its working capital efficiently and maintaining a healthy level of liquid assets.

Overall, based on the quick ratio analysis, Photronics Inc appears to have a solid liquidity position, which is essential for the company's financial health and ability to weather any short-term financial challenges.