Semtech Corporation (SMTC)
Liquidity ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.46 | 2.40 | 1.96 | 2.14 | 1.82 | 5.96 | 4.12 | 4.49 | 3.91 | 4.01 | 4.17 | 4.78 | 4.33 | 4.23 | 4.45 | 4.72 | 4.67 | 4.35 | 4.10 | 4.42 |
| Quick ratio | 1.36 | 1.23 | 1.00 | 1.04 | 1.06 | 4.99 | 3.18 | 2.60 | 2.83 | 2.83 | 2.26 | 2.68 | 3.10 | 3.03 | 3.26 | 3.47 | 3.71 | 3.43 | 3.14 | 3.46 |
| Cash ratio | 0.66 | 0.57 | 0.50 | 0.57 | 0.63 | 4.42 | 2.67 | 2.60 | 2.27 | 2.23 | 2.26 | 2.68 | 2.45 | 2.48 | 2.76 | 2.94 | 3.08 | 2.82 | 2.61 | 2.82 |
Semtech Corporation's liquidity ratios have shown stability over the past several quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has consistently been above 2, indicating a healthy liquidity position. The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also remained solid, staying above 1 in most periods. This suggests that Semtech has a strong ability to meet its short-term obligations without relying on inventory sales.
Furthermore, the cash ratio, which demonstrates the company's ability to cover its current liabilities with cash and cash equivalents, has been relatively stable, hovering around 2 in recent quarters. This signifies that Semtech has a reasonable level of cash on hand to meet its short-term obligations.
Overall, Semtech Corporation appears to have maintained a healthy liquidity position, with current, quick, and cash ratios indicating a strong ability to meet its short-term financial commitments.
Additional liquidity measure
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 98.91 | 109.40 | 119.74 | 142.19 | 148.24 | 90.03 | 74.10 | 85.25 | 87.13 | 86.29 | 87.32 | 82.90 | 77.60 | 66.09 | 70.05 | 64.52 | 56.76 | 69.20 | 58.42 | 53.21 |
The cash conversion cycle of Semtech Corporation has fluctuated over the past periods, ranging from a high of 148.24 days to a low of 53.21 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A longer cash conversion cycle can indicate that Semtech is taking longer to generate cash from its operations, possibly due to slower inventory turnover or extended accounts receivable collection periods. On the other hand, a shorter cash conversion cycle implies that the company is able to quickly recover cash from its investments, leading to improved liquidity and operational efficiency.
Overall, it would be beneficial for Semtech to closely monitor its cash conversion cycle and work towards optimizing its inventory management, accounts receivable collection, and accounts payable turnover to enhance its cash flow generation and operational performance.