Qorvo Inc (QRVO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.80 | 1.50 | 1.27 | 1.25 | 1.18 | 1.24 | 1.98 | 1.65 | 2.01 | 2.10 | 2.04 | 1.94 | 2.34 | 2.42 | 2.01 | 2.41 | 2.73 | 2.84 | 1.72 | 2.94 |
| 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 |
Qorvo Inc's liquidity ratios show a generally positive trend over the analyzed periods. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, decreased from a high of 4.08 in June 2020 to 2.60 in December 2024, indicating a slight decline in short-term liquidity but staying above 1, the threshold for a healthy current ratio.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced a decline from 2.94 in June 2020 to 1.50 in December 2024. This suggests a decrease in the company's ability to cover its short-term liabilities without relying on selling inventory.
The cash ratio, which specifically assesses the company's ability to cover its current liabilities with its cash and cash equivalents, trended downwards from 2.30 in June 2020 to 1.30 in March 2025. This indicates a gradual reduction in the company's cash reserves relative to its current liabilities.
Overall, while Qorvo Inc's liquidity ratios have slightly declined over the analyzed period, the company maintains a generally stable liquidity position, with current and quick ratios consistently above 1, indicating that it can meet its short-term obligations. However, it may be worth monitoring the downward trend in these ratios to ensure that the company maintains a healthy liquidity position in the future.
Additional liquidity measure
| 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 conversion cycle | days | 102.34 | 103.02 | 111.53 | 103.94 | 114.59 | 127.99 | 176.12 | 149.51 | 127.06 | 130.88 | 130.18 | 119.97 | 113.40 | 107.38 | 65.43 | 77.31 | 74.78 | 81.43 | 95.16 | 93.87 |
The cash conversion cycle of Qorvo Inc, a measure of how quickly the company can convert its resources into cash flows, has fluctuated over the years based on the data provided.
Qorvo Inc's cash conversion cycle ranged from around 74.78 days to as high as 176.12 days during the period from March 31, 2021, to September 30, 2023. Generally, a shorter cash conversion cycle indicates efficiency in managing working capital and generating cash flow.
The company experienced a significant increase in its cash conversion cycle from September 30, 2023, to June 30, 2024, rising from 176.12 days to 103.94 days. This could signal potential issues with managing inventory, collecting receivables, or paying suppliers during this period.
From September 30, 2024, to March 31, 2025, the trend in the cash conversion cycle stabilized around 100 days, indicating a more consistent performance in managing cash flows.
Overall, analyzing the cash conversion cycle provides insights into the efficiency of Qorvo Inc's operations and its ability to convert resources into cash, highlighting potential areas for improvement in working capital management.