Qorvo Inc (QRVO)

Cash ratio

		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	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	1,029,260	1,071,990	706,836	744,428	808,757	918,758	911,570	858,791	972,592	988,527	1,153,170	1,200,240	1,397,880	1,234,420	2,000,260	1,136,300	714,939	1,097,720	586,794	629,599
Short-term investments	US$ in thousands	—	—	—	—	1,094	—	—	—	—	—	—	—	—	0	37,848	36,921	—	—	—	—
Total current liabilities	US$ in thousands	1,230,090	1,280,330	671,942	638,976	555,763	613,590	764,127	718,450	675,127	673,427	902,495	703,708	681,581	613,898	1,477,020	509,332	539,003	491,205	449,629	452,146
Cash ratio		0.84	0.84	1.05	1.17	1.46	1.50	1.19	1.20	1.44	1.47	1.28	1.71	2.05	2.01	1.38	2.30	1.33	2.23	1.31	1.39

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,029,260K + $—K) ÷ $1,230,090K
= 0.84

The cash ratio of Qorvo Inc has shown fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Looking at the trend, the cash ratio has generally been above 1, indicating that Qorvo Inc has had more than enough cash to cover its short-term liabilities in most periods. The ratio peaked at 2.30 in the quarter ending June 30, 2020, which signifies a significant level of liquidity at that time.

However, the cash ratio has trended downwards since then, reaching a low of 0.84 in the quarters ending March 31, 2024, and December 31, 2023. This suggests a potential decrease in the company's ability to cover short-term obligations with its available cash.

It is important for investors and stakeholders to monitor the cash ratio closely, as a low ratio may indicate potential liquidity challenges for the company. Management may need to ensure efficient management of cash resources to maintain a healthy cash ratio and meet short-term obligations in the future.