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.