Qorvo Inc (QRVO)

The current ratio of Qorvo Inc has been consistently strong over the years, indicating the company's ability to meet its short-term obligations using current assets. However, there was a slight decline in the current ratio from 3.65 in March 2023 to 1.99 in March 2024, which may raise some concerns about the company's liquidity position in that period.

The quick ratio reflects a company's ability to cover its short-term liabilities with its most liquid assets. Qorvo Inc's quick ratio has also shown a decreasing trend over the years, dropping from 2.73 in March 2021 to 1.80 in March 2025. This may indicate potential challenges in meeting short-term obligations without relying on inventory.

The cash ratio, which measures a company's ability to pay off its current liabilities using only its cash and cash equivalents, has fluctuated over the years for Qorvo Inc. The ratio decreased from 2.06 in March 2021 to 0.84 in March 2024 before increasing to 1.30 in March 2025. This suggests varying levels of liquidity and cash reserves within the company.

Overall, while Qorvo Inc generally maintains strong liquidity ratios, the decreasing trends in the quick ratio and fluctuations in the cash ratio highlight the importance of closely monitoring the company's liquidity position to ensure it can meet its short-term financial obligations effectively.

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Additional liquidity measure

The cash conversion cycle of Qorvo Inc has shown some fluctuation over the past five years. It increased from 74.78 days as of March 31, 2021, to 110.87 days as of March 31, 2022. This trend continued to rise to 125.25 days by March 31, 2023, indicating a slower conversion of inventory to cash during this period.

However, there was a slight improvement in the cash conversion cycle in the subsequent years. As of March 31, 2024, the cycle decreased to 114.60 days, and further improved to 101.54 days by March 31, 2025. Despite the fluctuations, the company managed to lower its cash conversion cycle compared to the peak in 2023.

Overall, Qorvo Inc's cash conversion cycle has shown variability, reflecting the efficiency of the company in managing its working capital and the effectiveness of its operations in converting inventory to cash during the specified periods.