Semtech Corporation (SMTC)

Quick ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Cash	US$ in thousands	128,585	235,510	279,601	268,891	293,324
Short-term investments	US$ in thousands	14,545	12,557	12,402	11,989	10,700
Receivables	US$ in thousands	151,624	174,220	71,507	70,433	61,927
Total current liabilities	US$ in thousands	217,156	396,855	128,399	109,573	98,641
Quick ratio		1.36	1.06	2.83	3.21	3.71

January 28, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($128,585K + $14,545K + $151,624K) ÷ $217,156K
= 1.36

The quick ratio of Semtech Corporation has fluctuated over the past five years, ranging from a high of 3.71 in January 2020 to a low of 1.06 in January 2023. The quick ratio measures the company's ability to meet its short-term obligations with highly liquid assets, excluding inventory. A higher quick ratio indicates a stronger liquidity position, as the company has more assets readily available to cover immediate liabilities.

In January 2024, Semtech's quick ratio improved to 1.36 compared to the previous year, suggesting a better ability to meet short-term obligations using its liquid assets. However, it is still lower than the ratios reported in January 2022, 2021, and 2020, indicating a potential decrease in liquidity compared to those years.

Overall, while Semtech's current quick ratio of 1.36 indicates a reasonable level of liquidity, the company may want to monitor it closely to ensure it maintains a strong financial position to meet its short-term obligations efficiently.