Qualcomm Incorporated (QCOM)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,849,000 | 8,450,000 | 2,773,000 | 7,116,000 | 6,707,000 |
| Short-term investments | US$ in thousands | 5,451,000 | 2,874,000 | 7,054,000 | 9,914,000 | 4,507,000 |
| Receivables | US$ in thousands | 2,383,000 | 1,960,000 | 4,208,000 | 2,225,000 | 2,698,000 |
| Total current liabilities | US$ in thousands | 10,504,000 | 9,628,000 | 11,866,000 | 11,951,000 | 8,672,000 |
| Quick ratio | 1.49 | 1.38 | 1.18 | 1.61 | 1.60 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,849,000K
+ $5,451,000K
+ $2,383,000K)
÷ $10,504,000K
= 1.49
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher indicates that a company has sufficient liquid assets to cover its current liabilities.
Looking at Qualcomm Incorporated's quick ratio over the past five years, we can see a fluctuating trend. In 2024, the quick ratio stands at 1.49, which is an improvement from the previous year's ratio of 1.38. This indicates that Qualcomm has increased its ability to cover its short-term obligations with its liquid assets.
In 2023, the quick ratio was 1.38, showing a slight decrease from the previous year. However, the ratio still remains above 1, indicating a healthy liquidity position. In 2022, the quick ratio decreased further to 1.18, signaling a potential concern as the company's ability to cover short-term liabilities with liquid assets weakened.
On the other hand, in 2021 and 2020, Qualcomm's quick ratio was 1.61 and 1.60, respectively, reflecting a stronger liquidity position compared to 2022.
Overall, Qualcomm's quick ratio has shown variability over the past five years, with fluctuations indicating changes in the company's ability to cover its short-term liabilities with its liquid assets. A quick ratio above 1 generally suggests that Qualcomm has adequate liquidity to meet its short-term obligations, but it's essential to monitor these ratios over time to assess the company's financial health and liquidity management.
Peer comparison
Sep 30, 2024