Qualcomm Incorporated (QCOM)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.56 2.33 2.42 2.42 2.09 1.75 1.61 1.61 1.65 1.68 1.72 2.02 2.15 2.14 1.97 1.57 1.76 1.88 1.77 1.55
Quick ratio 1.31 1.38 1.02 0.85 1.14 1.18 0.91 1.16 1.25 1.61 1.13 1.27 1.33 1.60 1.46 1.02 1.24 1.49 1.42 1.21
Cash ratio 1.31 1.18 1.02 0.85 1.14 0.83 0.91 1.16 1.25 1.42 1.13 1.27 1.33 1.29 1.34 1.02 1.24 1.37 1.32 0.98

Qualcomm Incorporated's liquidity ratios indicate the company's ability to meet its short-term obligations and cover immediate financial needs. The current ratio has been relatively stable over the past five quarters, showing improvement from 1.55 in Q1 2020 to 2.56 in Q4 2023. This suggests that Qualcomm has a comfortable level of current assets to cover its current liabilities.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has fluctuated but generally remained above 1 over the same period. This indicates that Qualcomm can meet its short-term obligations without relying on selling inventory, although there was a slight dip in Q1 2020.

The cash ratio, representing the most conservative liquidity metric, has also shown a stable trend with values consistently above 1. This indicates that Qualcomm holds enough cash and cash equivalents to cover its current liabilities without relying on other current assets.

Overall, the liquidity ratios for Qualcomm Incorporated demonstrate a strong financial position with sufficient short-term liquidity to meet obligations and fund operational needs.

See also:

Qualcomm Incorporated Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 92.74 123.71 105.75 110.80 86.80 84.60 34.35 18.62 8.11 36.43 11.82 3.72 4.22 55.65 29.75 -15.25 -12.76 17.30 22.62 44.27

The cash conversion cycle of Qualcomm Incorporated has fluctuated over the past few quarters. It is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The cash conversion cycle for Qualcomm Incorporated was 92.74 days at the end of December 2023, indicating that it takes approximately 93 days for the company to convert its investments into cash. This represents an increase from the previous quarter when the cycle was 123.71 days in September 2023. The increase suggests that Qualcomm is taking longer to convert its investments into cash, which may indicate potential issues with managing inventory, accounts receivable, or accounts payable.

Looking further back, the cash conversion cycle was at its lowest in March 2020 with a negative value of -15.25 days. This negative value indicates that Qualcomm was able to convert its investments into cash at a faster rate during that period. However, since then, the cycle has fluctuated, with some quarters showing improvements while others indicating a longer cycle.

Overall, analyzing the trend of Qualcomm's cash conversion cycle can provide insight into the efficiency of the company's working capital management. A longer cycle may indicate potential liquidity issues or inefficiencies in the company's operations, while a shorter cycle suggests better management and cash flow generation. It is important for Qualcomm to continuously monitor and optimize its cash conversion cycle to improve its financial performance and operational efficiency.