TTM Technologies Inc (TTMI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	450,208	402,749	537,678	451,565	379,818
Short-term investments	US$ in thousands	—	—	—	—	20,336
Receivables	US$ in thousands	413,557	473,225	386,347	381,105	503,671
Total current liabilities	US$ in thousands	703,984	761,325	558,148	518,046	946,666
Quick ratio		1.23	1.15	1.66	1.61	0.95

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($450,208K + $—K + $413,557K) ÷ $703,984K
= 1.23

The quick ratio, also known as the acid-test ratio, indicates TTM Technologies Inc's ability to meet short-term obligations with its most liquid assets excluding inventory. The trend in TTM's quick ratio over the past five years shows fluctuations in the company's short-term liquidity position.

In 2023, the quick ratio of TTM Technologies Inc stood at 1.23, indicating that the company had $1.23 in liquid assets available to cover each dollar of current liabilities. This represents an improvement compared to the previous year when the quick ratio was 1.15. The increase in the quick ratio from 2022 to 2023 suggests a strengthened ability to meet short-term obligations without relying heavily on inventory.

Looking back at the historical data, the quick ratio of TTM Technologies Inc has shown variability. In 2021, the quick ratio was relatively high at 1.66, indicating a strong liquidity position. The ratio decreased slightly to 1.61 in 2020 but remained above 1, reflecting a healthy short-term liquidity position. However, in 2019, the quick ratio dropped to 0.95, which could signify potential liquidity challenges in that year.

Overall, the trend in TTM Technologies Inc's quick ratio demonstrates fluctuations in the company's ability to meet short-term obligations with its most liquid assets over the past five years. Continuous monitoring of the quick ratio is essential to assess the company's liquidity position and its ability to manage short-term financial commitments effectively.