Qualcomm Incorporated (QCOM)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	8,450,000	2,773,000	7,116,000	6,707,000	11,839,000
Short-term investments	US$ in thousands	2,874,000	7,054,000	9,914,000	4,507,000	421,000
Total current liabilities	US$ in thousands	9,628,000	11,866,000	11,951,000	8,672,000	8,935,000
Cash ratio		1.18	0.83	1.42	1.29	1.37

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,450,000K + $2,874,000K) ÷ $9,628,000K
= 1.18

The cash ratio of Qualcomm Incorporated has fluctuated over the past five years. As of September 30, 2023, the company's cash ratio stood at 1.18, indicating that Qualcomm holds $1.18 in liquid assets for every dollar of current liabilities. This represents an improvement compared to the previous year when the cash ratio was 0.83.

In general, a cash ratio above 1 signifies that a company has sufficient liquid assets to cover its short-term obligations. Qualcomm's cash ratio has been above 1 for the past five years, indicating a healthy liquidity position. However, investors and stakeholders should note the slight decrease in the cash ratio from 2021 to 2022, although the ratio has improved in the most recent year.

Overall, Qualcomm's consistent ability to maintain a cash ratio above 1 demonstrates its capability to meet its short-term obligations using its liquid assets. Investors may view this positively as it indicates a strong liquidity position within the company.