Qorvo Inc (QRVO)

Current 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
Total current assets	US$ in thousands	2,167,280	2,096,860	2,532,460	2,378,190	2,446,030	2,428,370	2,262,880	2,087,780	2,029,790	2,257,700	2,521,280	2,372,490	2,449,860	2,445,850	2,541,270	2,374,080	2,483,800	2,322,260	3,062,730	2,079,330
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
Current ratio		2.77	2.60	1.90	1.95	1.99	1.90	3.37	3.27	3.65	3.68	3.30	3.30	3.63	3.63	2.82	3.37	3.64	3.78	2.07	4.08

March 31, 2025 calculation

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

Qorvo Inc's current ratio has shown variability over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, was at a healthy level of 4.08 as of June 30, 2020. However, it decreased to 2.07 by September 30, 2020, indicating potentially reduced liquidity.

There was a recovery in the current ratio by December 31, 2020, where it reached 3.78, and it remained relatively stable around the 3.5 level for the next few quarters. This suggests that the company continued to have a strong ability to meet its short-term obligations.

However, there was a noticeable decrease in the current ratio to 1.90 as of December 31, 2023, and it remained at a similar level for the next few quarters. This decline may raise concerns about Qorvo Inc's ability to cover its short-term liabilities with its current assets during those periods.

Overall, while the current ratio fluctuated over the years, it generally stayed above 2.0, except for the decrease to 1.90 in the last few quarters. It is essential for investors and analysts to closely monitor changes in the current ratio as it can provide insights into the company's liquidity position and short-term financial health.