Semtech Corporation (SMTC)

Current ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Total current assets	US$ in thousands	534,197	722,786	502,295	474,728	460,736
Total current liabilities	US$ in thousands	217,156	396,855	128,399	109,573	98,641
Current ratio		2.46	1.82	3.91	4.33	4.67

January 28, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $534,197K ÷ $217,156K
= 2.46

The current ratio of Semtech Corporation has fluctuated over the past five years. As of January 28, 2024, the current ratio stood at 2.46, reflecting an improvement compared to the prior year's ratio of 1.82. Despite this improvement, the current ratio remains below the levels seen in January 2022, January 2021, and January 2020, which were 3.91, 4.33, and 4.67, respectively.

A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests that Semtech Corporation is capable of meeting its short-term financial obligations. However, the decreasing trend in the current ratio over the past few years may raise concerns about the company's liquidity position.

It is important for investors and stakeholders to monitor the current ratio trend over time to assess Semtech Corporation's ability to manage its short-term financial obligations effectively.