Wolfspeed Inc (WOLF)

Quick ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash	US$ in thousands	1,045,900	1,142,400	904,400	1,762,000	1,757,000	795,100	1,085,100	521,600	449,500	485,900	185,400	261,500	379,000	531,600	388,100	436,400	448,800	323,000	382,600	433,300
Short-term investments	US$ in thousands	1,128,700	1,408,500	1,731,300	1,585,600	1,197,900	1,453,100	1,399,300	675,600	749,300	800,200	501,100	596,300	775,600	761,700	580,600	702,100	790,900	529,900	568,900	560,600
Receivables	US$ in thousands	198,800	137,800	147,400	177,700	172,700	180,400	181,500	163,700	289,900	133,700	120,800	117,000	112,400	97,200	93,800	119,300	120,600	167,100	138,300	137,600
Total current liabilities	US$ in thousands	665,300	727,000	671,200	749,300	627,900	607,200	460,000	380,800	388,500	322,600	341,000	319,000	448,800	382,800	385,600	343,400	291,200	251,400	248,500	242,700
Quick ratio		3.57	3.70	4.15	4.70	4.98	4.00	5.80	3.57	3.83	4.40	2.37	3.06	2.82	3.63	2.76	3.66	4.67	4.06	4.39	4.66

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,045,900K + $1,128,700K + $198,800K) ÷ $665,300K
= 3.57

The quick ratio of Wolfspeed Inc has shown fluctuations over the periods under review. The quick ratio for the most recent quarter, ending June 30, 2024, is 3.57, indicating that the company has $3.57 of liquid assets available to cover each dollar of its current liabilities.

Looking back over the past several quarters, we see variations in the quick ratio, with values ranging from 2.37 to 5.80. A higher quick ratio suggests that the company has more than enough liquid assets to meet its short-term obligations, while a lower ratio may indicate potential liquidity issues.

Overall, Wolfspeed Inc has maintained relatively strong liquidity levels based on its quick ratio, with the ratio consistently above 1. This indicates the company's ability to quickly cover its short-term liabilities using its liquid assets. Investors and creditors often view a quick ratio above 1 as a positive sign of financial health and the company's ability to meet its short-term obligations.