Qualcomm Incorporated (QCOM)
Liquidity ratios
| Sep 30, 2024 | Jun 23, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.40 | 2.39 | 2.65 | 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 |
| Quick ratio | 1.49 | 1.34 | 1.51 | 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 |
| Cash ratio | 1.27 | 1.34 | 1.51 | 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 |
Qualcomm Incorporated has shown consistent improvement in its liquidity ratios over the past few quarters. The current ratio has been steadily increasing, indicating the company's ability to meet its short-term obligations with its current assets. The current ratio has been above 2 for the most recent quarters, signaling a healthy liquidity position.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown an upward trend, although it has fluctuated slightly. This suggests that Qualcomm has a strong ability to meet its immediate obligations without relying on selling inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has been relatively stable and above 1 for the past quarters. This indicates that Qualcomm has a solid cash position to cover its short-term liabilities without relying on other current assets.
Overall, Qualcomm's liquidity ratios demonstrate a strong financial position with ample liquidity to meet its short-term obligations. The company's ability to maintain and improve these ratios over time reflects its efficient management of working capital and financial resources.
See also:
Qualcomm Incorporated Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Sep 30, 2024 | Jun 23, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 104.47 | 76.09 | 85.59 | 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 |
The cash conversion cycle of Qualcomm Incorporated has shown fluctuations over the periods under review. The cash conversion cycle measures how long it takes for a company to convert its investments in inventories and accounts receivable into cash flows from sales.
From Sep 30, 2024, to Sep 30, 2022, the cash conversion cycle ranged from 34.35 days to 123.71 days, indicating variability in the company's ability to manage its working capital efficiently. A lower cash conversion cycle typically suggests that the company is able to generate cash quickly from its operating activities.
In recent periods, the cash conversion cycle has been declining, indicating an improvement in Qualcomm's cash flow conversion efficiency. Notably, the company experienced negative cash conversion cycles in the last two quarters of 2020, suggesting that Qualcomm was able to convert its investments into cash flows at a rapid pace during those periods.
Overall, management of the cash conversion cycle is crucial for Qualcomm to optimize its working capital and liquidity position, ensuring smooth operations and financial stability in the long run.