Qualcomm Incorporated (QCOM)

The liquidity ratios of Qualcomm Incorporated for the past five years show a mixed trend in the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been generally improving over the years. Qualcomm's current ratio stood at 2.40 in 2024, compared to 2.33 in 2023. This indicates that the company had $2.40 in current assets for every $1 of current liabilities in 2024, suggesting a strong liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also shows an improving trend over the years. In 2024, Qualcomm's quick ratio was 1.49, up from 1.38 in 2023. This suggests that the company had $1.49 of highly liquid assets to cover each dollar of current liabilities, indicating a strong ability to meet short-term obligations without relying on inventory.

On the other hand, the cash ratio, which provides an even more conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities, shows some fluctuation. In 2024, Qualcomm's cash ratio was 1.27, a slight increase from 1.18 in 2023. This indicates that the company had $1.27 in cash and cash equivalents for every dollar of current liabilities, highlighting a solid cash position to meet short-term obligations.

Overall, Qualcomm's liquidity ratios present a positive outlook, with the current and quick ratios showing an increasing trend, indicating improved liquidity and ability to meet short-term obligations. The cash ratio also indicates a healthy cash position, although it experienced some fluctuations over the years.

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See also:

Qualcomm Incorporated Liquidity Ratios

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Additional liquidity measure

The cash conversion cycle of Qualcomm Incorporated has fluctuated over the past five years. In September 2024, the company's cash conversion cycle was 104.46 days, showing an improvement compared to the previous year's cycle of 123.71 days. However, it was higher than the cycle observed in September 2022, which was 84.60 days.

Looking further back, in September 2021, Qualcomm had a cash conversion cycle of 36.43 days, marking a significant decrease from the cycle of 55.65 days in September 2020. This indicates that the company was able to efficiently manage its cash conversion during that period.

Overall, Qualcomm's cash conversion cycle has shown variability over the years, with fluctuations possibly influenced by factors such as operating efficiency, inventory management, and accounts receivable and payable turnover. Further analysis and comparison with industry benchmarks would provide additional insights into Qualcomm's cash conversion performance.