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.
Peer comparison
Jan 28, 2024