Qorvo Inc (QRVO)

Cash ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 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
Cash and cash equivalents	US$ in thousands	1,021,180	769,432	1,096,450	1,082,420	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
Short-term investments	US$ in thousands	—	—	—	—	84	—	—	—	1,094	—	—	—	2,906	—	—	—	3,802	0	37,848	36,921
Total current liabilities	US$ in thousands	783,182	807,861	1,333,740	1,216,540	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
Cash ratio		1.30	0.95	0.82	0.89	0.84	0.84	1.05	1.17	1.46	1.50	1.19	1.20	1.44	1.47	1.28	1.71	2.06	2.01	1.38	2.30

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,021,180K + $—K) ÷ $783,182K
= 1.30

The cash ratio of Qorvo Inc provides insight into the company's ability to cover its short-term liabilities using its available cash and cash equivalents. The ratio has fluctuated over the reporting periods, starting at a healthy 2.30 on June 30, 2020, indicating that the company had more than enough cash to cover its short-term obligations.

However, the ratio decreased gradually over time, reaching a low of 0.82 on September 30, 2024, which might raise concerns about the company's liquidity position. Although the ratio improved slightly in the subsequent periods, reaching 1.30 on March 31, 2025, which is a positive sign, it is still lower compared to the earlier reporting periods.

Overall, the downward trend in the cash ratio indicates that Qorvo Inc may have been using its cash for investments, expansion, or other purposes, potentially impacting its short-term liquidity position. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet its short-term obligations with its available cash resources.