Semtech Corporation (SMTC)

Quick ratio

		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	US$ in thousands	128,585	123,820	147,912	164,198	235,510	617,801	362,150	275,184	279,601	276,599	262,657	258,219	268,891	262,271	281,456	268,947	293,324	283,057	287,839	287,302
Short-term investments	US$ in thousands	14,545	12,725	12,870	12,803	12,557	1,025	11,766	11,544	12,402	—	—	—	—	—	—	—	10,700	2,027	1,013	3,605
Receivables	US$ in thousands	151,624	156,613	159,097	145,383	174,220	80,539	71,105	—	71,507	74,313	—	—	70,433	58,700	51,672	49,451	61,927	61,444	58,643	66,459
Total current liabilities	US$ in thousands	217,156	238,997	321,057	309,756	396,855	140,093	140,129	110,416	128,399	123,909	116,366	96,512	109,573	105,873	102,072	91,626	98,641	101,147	110,577	103,330
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

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 shown some fluctuations over the past few quarters. The quick ratio, a measure of the company's ability to meet its short-term obligations with its most liquid assets, was 1.36 as of January 28, 2024. This indicates that the company had $1.36 of liquid assets available to cover each dollar of current liabilities, suggesting a healthy liquidity position.

Looking at the trend over the past few quarters, the quick ratio has generally been above 1, indicating that the company has a strong ability to meet its short-term obligations. However, there have been some fluctuations, with ratios ranging from 1.00 to 4.99 over the period analyzed.

The quick ratio was notably high at 4.99 on October 30, 2022, which may have been influenced by specific factors such as the timing of receivables or inventory management. However, it is important to note that an excessively high quick ratio may also indicate inefficiencies in asset utilization.

Overall, the trend of the quick ratio for Semtech Corporation suggests that the company has maintained a relatively stable liquidity position over the past few quarters, with the ability to cover its short-term obligations using its liquid assets.