Qorvo Inc (QRVO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 3.14 | 4.21 | 3.45 | 3.44 |
| Quick ratio | 1.18 | 1.24 | 1.98 | 1.68 | 2.05 | 2.15 | 1.19 | 1.20 | 2.33 | 1.47 | 1.28 | 1.71 | 2.72 | 2.01 | 1.38 | 2.30 | 1.33 | 2.23 | 1.31 | 1.39 |
| 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 |
Qorvo Inc's liquidity ratios have shown fluctuations over the periods analyzed. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has generally been above 2 in recent quarters, implying a healthy liquidity position. However, there was a slight dip in the current ratio in the most recent period, indicating a potential decrease in short-term liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited variability over time. While the quick ratio has generally been above 1, suggesting the company's ability to meet its short-term obligations without relying on inventory, it too experienced a decline in the latest quarter which may raise concerns about the company's immediate liquidity position.
The cash ratio, reflecting the proportion of current liabilities covered by cash and cash equivalents, has generally been above 1 in recent periods, indicating the company has sufficient cash to meet its short-term obligations. The cash ratio also showed some fluctuations, but overall, it appears that Qorvo Inc has maintained a comfortable cash position.
Overall, Qorvo Inc's liquidity ratios demonstrate a mixed performance, with some fluctuations observed across the periods analyzed. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 114.60 | 126.58 | 173.92 | 149.31 | 127.96 | 133.62 | 77.55 | 77.22 | 113.40 | 55.72 | 12.06 | 35.61 | 74.78 | 31.81 | 43.19 | 57.27 | 51.44 | 46.74 | 52.89 | 55.69 |
The cash conversion cycle of Qorvo Inc has displayed fluctuations over the periods analyzed. It measures the time taken to convert inventory into cash from sales.
In the first quarter of 2022, Qorvo's cash conversion cycle was 55.72 days, indicating a relatively efficient process of converting inventory to cash. This was preceded by a shorter cycle of 12.06 days in the fourth quarter of 2021, indicating a particularly effective period.
However, in the third quarter of 2023, the cash conversion cycle increased significantly to 173.92 days, reflecting a slowdown in the conversion of inventory to cash. This was followed by a gradual improvement in the cycle to 114.60 days in the first quarter of 2024.
Overall, Qorvo's cash conversion cycle has shown variability, with periods of efficiency and inefficiency. Analyzing the factors contributing to these fluctuations can provide insights into the company's working capital management and operational efficiency.