Qorvo Inc (QRVO)

Current ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total current assets	US$ in thousands	2,167,280	2,446,030	2,029,790	2,449,860	2,483,800
Total current liabilities	US$ in thousands	783,182	1,230,090	555,763	675,127	681,581
Current ratio		2.77	1.99	3.65	3.63	3.64

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,167,280K ÷ $783,182K
= 2.77

Based on the provided data for Qorvo Inc's current ratio over the last five years, the company has demonstrated a stable and strong liquidity position. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, was consistently above 3 in the years 2021, 2022, and 2023, indicating a comfortable liquidity position.

However, there was a notable decline in the current ratio in the fiscal year ending March 31, 2024, dropping to 1.99. This dip may raise concerns about the company's short-term liquidity management during that particular period. It is essential to further investigate the factors behind this decrease to understand whether it was due to a decrease in current assets or an increase in current liabilities.

In the most recent fiscal year ending March 31, 2025, the current ratio improved to 2.77, albeit still below the levels seen in the earlier years. This rebound suggests that Qorvo Inc may have taken measures to enhance its liquidity position, although the ratio remains below the ideal level of 2 or higher.

Overall, while Qorvo Inc has generally maintained a healthy current ratio above 2 in the past five years, it is important for stakeholders to monitor any fluctuations in this ratio closely to ensure the company's short-term liquidity remains stable and adequate for its operational needs.