Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Monolithic Power Systems Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Current Ratio
- The current ratio exhibited fluctuations throughout the periods analyzed. Initially, it showed a moderate decline from 4.91 to 4.58 between the first quarter of 2021 and the first quarter of 2022, followed by a rebound reaching a peak of 7.74 in the fourth quarter of 2023. Subsequently, the ratio trended downward, falling to 4.92 by the first quarter of 2025. Overall, the current ratio indicates a strong liquidity position, with peaks suggesting particularly robust short-term asset coverage over current liabilities in late 2023 before normalizing.
- Quick Ratio
- The quick ratio followed a comparable pattern to the current ratio but generally remained at lower values due to the exclusion of inventories. It declined from 3.85 in the first quarter of 2021 to a low of 3.06 in the third quarter of 2022. After this low point, the quick ratio increased steadily, reaching a high of 5.48 in the fourth quarter of 2023. Thereafter, it showed a decrease to 3.42 by the first quarter of 2025. These movements suggest periods of strengthening liquidity available from more liquid current assets, with significant liquidity improvements evident during late 2023.
- Cash Ratio
- The cash ratio consistently remained lower than both the current and quick ratios, reflecting the most conservative liquidity metric based solely on cash and cash equivalents. Starting at 3.4 in the first quarter of 2021, the ratio decreased to 2.53 by the third quarter of 2022 before rising again to a peak of 4.72 in the fourth quarter of 2023. In subsequent periods, the cash ratio declined to 2.83 in the first quarter of 2025. The pattern points to fluctuating cash reserves relative to current liabilities, with a notable cash accumulation in late 2023 followed by a reduction in early 2025, consistent with the trends in broader liquidity ratios.
Current Ratio
Monolithic Power Systems Inc., current ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current assets | 1,788,386) | 1,565,053) | 2,160,450) | 1,997,433) | 1,976,492) | 1,819,499) | 1,735,376) | 1,632,351) | 1,622,629) | 1,410,619) | 1,323,457) | 1,332,089) | 1,247,136) | 1,124,852) | 1,064,494) | 950,080) | 922,430) | ||||||
| Current liabilities | 363,401) | 294,567) | 336,588) | 295,159) | 311,880) | 235,035) | 250,018) | 250,841) | 315,843) | 263,400) | 290,988) | 254,487) | 272,528) | 226,944) | 227,663) | 182,731) | 187,909) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 4.92 | 5.31 | 6.42 | 6.77 | 6.34 | 7.74 | 6.94 | 6.51 | 5.14 | 5.36 | 4.55 | 5.23 | 4.58 | 4.96 | 4.68 | 5.20 | 4.91 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 2.80 | 2.62 | 2.50 | 2.82 | 2.64 | 2.51 | 2.19 | 2.18 | 2.38 | 2.36 | 2.16 | 2.44 | 2.40 | 2.02 | 2.24 | 2.70 | 2.51 | ||||||
| Analog Devices Inc. | 1.93 | 1.84 | 1.69 | 1.58 | 1.51 | 1.37 | 1.71 | 1.79 | 2.12 | 2.02 | 1.92 | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | ||||||
| Applied Materials Inc. | 2.68 | 2.51 | 2.86 | 2.80 | 2.71 | 2.60 | 2.30 | 2.26 | 2.31 | 2.16 | 2.26 | 2.29 | 2.51 | 2.54 | 2.98 | 3.10 | 3.17 | ||||||
| Broadcom Inc. | 1.00 | 1.17 | 1.04 | 1.25 | 1.33 | 2.82 | 2.50 | 2.38 | 2.52 | 2.62 | 2.32 | 2.14 | 2.44 | 2.64 | 2.41 | 2.21 | 2.14 | ||||||
| Intel Corp. | 1.31 | 1.33 | 1.31 | 1.59 | 1.57 | 1.54 | 1.53 | 1.60 | 1.76 | 1.57 | 1.77 | 1.86 | 2.13 | 2.10 | 2.07 | 1.99 | 1.90 | ||||||
| KLA Corp. | 2.13 | 2.15 | 2.14 | 1.91 | 2.21 | 2.24 | 2.35 | 2.34 | 2.43 | 2.50 | 2.33 | 2.41 | 2.44 | 2.71 | 2.66 | 2.59 | 2.72 | ||||||
| Lam Research Corp. | 2.53 | 2.97 | 2.82 | 3.06 | 3.06 | 3.16 | 3.09 | 3.01 | 2.69 | 2.69 | 2.83 | 3.13 | 3.27 | 3.30 | 3.13 | 3.19 | 3.31 | ||||||
| Micron Technology Inc. | 2.72 | 2.64 | 3.41 | 3.74 | 3.53 | 4.46 | 4.26 | 4.17 | 3.51 | 2.89 | 3.24 | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | ||||||
| NVIDIA Corp. | 3.53 | 4.17 | 3.59 | 2.79 | 3.43 | 3.52 | 3.39 | 3.62 | 5.32 | 6.65 | 7.14 | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | ||||||
| Qualcomm Inc. | 2.62 | 2.40 | 2.39 | 2.65 | 2.56 | 2.33 | 2.42 | 2.42 | 2.09 | 1.75 | 1.61 | 1.61 | 1.65 | 1.68 | 1.72 | 2.02 | 2.15 | ||||||
| Texas Instruments Inc. | 5.26 | 4.12 | 4.31 | 4.62 | 4.91 | 4.55 | 5.69 | 5.72 | 5.17 | 4.70 | 4.92 | 5.09 | 5.54 | 5.33 | 5.63 | 5.08 | 6.12 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,788,386 ÷ 363,401 = 4.92
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrate an overall upward trend over the analyzed periods. Starting from approximately $922 million in early 2021, they steadily increase through subsequent quarters, peaking near $2 billion by the first quarter of 2024. A slight decline is observed in the final quarters of 2024 and early 2025, indicating some fluctuation but maintaining substantially higher values compared to the start of the period.
- Current Liabilities
- Current liabilities also show a general increasing pattern from about $188 million in the first quarter of 2021 to over $360 million by early 2025. Throughout the quarters, liabilities fluctuate more noticeably, with some quarters reflecting decreases relative to the prior ones, particularly in late 2021 and mid-2023, but the overall trend is an increase consistent with rising current assets.
- Current Ratio
- The current ratio, representing liquidity, remains strong across the periods, frequently exceeding 4.5 and even reaching highs above 7 in early 2024. The ratio exhibits variability quarter-to-quarter without a clear linear trend but generally reflects robust liquidity. Later periods in 2024 and early 2025 show a slight decline in the ratio, falling back to just below 5, indicating a moderate reduction in liquidity compared to peak levels but still reflecting a solid buffer to cover current liabilities.
- Summary
- Overall, the data indicates steady growth in current assets accompanied by increasing current liabilities, while the current ratio suggests maintained liquidity strength throughout the years. The fluctuations in liabilities and ratio near the end of the timeline suggest some adjustment in working capital management, but the company continues to exhibit sound short-term financial health sufficient to meet its obligations.
Quick Ratio
Monolithic Power Systems Inc., quick ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | 637,354) | 691,816) | 700,347) | 550,475) | 488,273) | 527,843) | 421,178) | 506,959) | 488,972) | 288,607) | 316,210) | 342,867) | 260,604) | 189,265) | 226,091) | 220,210) | 218,368) | ||||||
| Short-term investments | 389,310) | 171,130) | 762,003) | 756,770) | 798,116) | 580,633) | 621,123) | 433,527) | 428,598) | 449,266) | 419,837) | 469,012) | 512,908) | 535,817) | 515,947) | 450,078) | 420,455) | ||||||
| Accounts receivable, net | 214,866) | 172,518) | 164,704) | 157,890) | 194,428) | 179,858) | 185,820) | 169,180) | 184,274) | 182,714) | 153,404) | 125,508) | 120,318) | 104,813) | 79,859) | 77,553) | 84,059) | ||||||
| Total quick assets | 1,241,530) | 1,035,464) | 1,627,054) | 1,465,135) | 1,480,817) | 1,288,334) | 1,228,121) | 1,109,666) | 1,101,844) | 920,587) | 889,451) | 937,387) | 893,830) | 829,895) | 821,897) | 747,841) | 722,882) | ||||||
| Current liabilities | 363,401) | 294,567) | 336,588) | 295,159) | 311,880) | 235,035) | 250,018) | 250,841) | 315,843) | 263,400) | 290,988) | 254,487) | 272,528) | 226,944) | 227,663) | 182,731) | 187,909) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 3.42 | 3.52 | 4.83 | 4.96 | 4.75 | 5.48 | 4.91 | 4.42 | 3.49 | 3.50 | 3.06 | 3.68 | 3.28 | 3.66 | 3.61 | 4.09 | 3.85 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 1.66 | 1.56 | 1.57 | 1.79 | 1.71 | 1.67 | 1.42 | 1.40 | 1.52 | 1.57 | 1.48 | 1.82 | 1.83 | 1.49 | 1.64 | 2.01 | 1.85 | ||||||
| Analog Devices Inc. | 1.32 | 1.24 | 1.14 | 1.02 | 0.86 | 0.76 | 0.98 | 1.06 | 1.36 | 1.34 | 1.34 | 1.44 | 1.54 | 1.24 | 0.82 | 0.76 | 1.12 | ||||||
| Applied Materials Inc. | 1.84 | 1.74 | 1.95 | 1.79 | 1.72 | 1.63 | 1.43 | 1.35 | 1.30 | 1.17 | 1.24 | 1.32 | 1.62 | 1.64 | 2.02 | 2.10 | 2.15 | ||||||
| Broadcom Inc. | 0.68 | 0.82 | 0.76 | 0.76 | 0.83 | 2.34 | 2.04 | 1.94 | 2.12 | 2.18 | 1.89 | 1.75 | 2.03 | 2.27 | 2.05 | 1.86 | 1.80 | ||||||
| Intel Corp. | 0.75 | 0.72 | 0.77 | 1.01 | 0.91 | 1.01 | 0.97 | 1.00 | 1.15 | 1.01 | 1.08 | 1.22 | 1.56 | 1.38 | 1.46 | 1.30 | 1.23 | ||||||
| KLA Corp. | 1.37 | 1.36 | 1.33 | 1.13 | 1.30 | 1.33 | 1.41 | 1.48 | 1.53 | 1.57 | 1.48 | 1.63 | 1.62 | 1.81 | 1.80 | 1.74 | 1.76 | ||||||
| Lam Research Corp. | 1.69 | 1.93 | 1.78 | 1.95 | 1.87 | 1.95 | 1.93 | 1.88 | 1.75 | 1.72 | 1.88 | 2.20 | 2.18 | 2.11 | 1.79 | 1.83 | 1.89 | ||||||
| Micron Technology Inc. | 1.67 | 1.59 | 1.98 | 2.13 | 2.01 | 2.53 | 2.50 | 2.49 | 2.13 | 1.92 | 2.35 | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | ||||||
| NVIDIA Corp. | 2.88 | 3.38 | 2.92 | 2.23 | 2.67 | 2.61 | 2.63 | 2.95 | 4.63 | 5.96 | 6.44 | 5.22 | 3.92 | 3.56 | 3.46 | 5.42 | 9.60 | ||||||
| Qualcomm Inc. | 1.79 | 1.64 | 1.64 | 1.85 | 1.70 | 1.51 | 1.47 | 1.32 | 1.21 | 1.01 | 0.90 | 1.16 | 1.25 | 1.34 | 1.38 | 1.64 | 1.78 | ||||||
| Texas Instruments Inc. | 2.76 | 2.55 | 2.88 | 3.13 | 3.40 | 3.12 | 4.12 | 4.24 | 3.93 | 3.67 | 3.98 | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,241,530 ÷ 363,401 = 3.42
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit an overall upward trend from March 2021 through September 2024, increasing from approximately $723 million to a peak near $1.63 billion. This demonstrates a strengthening liquidity position over this period. However, in December 2024, there is a notable decline to about $1.04 billion, followed by a partial recovery to roughly $1.24 billion in March 2025. This dip interrupts the otherwise sustained growth and might warrant further investigation into the underlying causes.
- Current Liabilities
- Current liabilities show a general increase over time, rising from approximately $188 million in March 2021 to around $363 million by March 2025. Although fluctuations occur quarter-to-quarter, the liability base appears to expand steadily. Some quarters, such as December 2024, exhibit a decrease in liabilities from previous quarters, but this is not sustained.
- Quick Ratio
- The quick ratio generally remains strong and well above the threshold of 1, indicating ample short-term liquidity. Starting at 3.85 in March 2021, the ratio fluctuates, reaching a low near 3.06 in September 2022 and a high of 5.48 in December 2023. This indicates fluctuations in liquid assets relative to current liabilities, with a peak liquidity position towards the end of 2023. Subsequently, there is a decline in the quick ratio to 3.42 by March 2025, corresponding with the decrease in quick assets and the increase in current liabilities seen in the late 2024 and early 2025 periods.
- Overall Analysis
- Liquidity remains robust throughout the examined periods, supported by increasing quick assets and a high quick ratio. The increase in current liabilities is notable but does not compromise liquidity significantly as evidenced by the maintaining quick ratios above 3. A dip in total quick assets and quick ratio in late 2024 suggests a temporary tightening of liquidity, possibly due to increased short-term obligations or asset reallocation. Monitoring this fluctuation is recommended to assess any potential emerging liquidity risks.
Cash Ratio
Monolithic Power Systems Inc., cash ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | 637,354) | 691,816) | 700,347) | 550,475) | 488,273) | 527,843) | 421,178) | 506,959) | 488,972) | 288,607) | 316,210) | 342,867) | 260,604) | 189,265) | 226,091) | 220,210) | 218,368) | ||||||
| Short-term investments | 389,310) | 171,130) | 762,003) | 756,770) | 798,116) | 580,633) | 621,123) | 433,527) | 428,598) | 449,266) | 419,837) | 469,012) | 512,908) | 535,817) | 515,947) | 450,078) | 420,455) | ||||||
| Total cash assets | 1,026,664) | 862,946) | 1,462,350) | 1,307,245) | 1,286,389) | 1,108,476) | 1,042,301) | 940,486) | 917,570) | 737,873) | 736,047) | 811,879) | 773,512) | 725,082) | 742,038) | 670,288) | 638,823) | ||||||
| Current liabilities | 363,401) | 294,567) | 336,588) | 295,159) | 311,880) | 235,035) | 250,018) | 250,841) | 315,843) | 263,400) | 290,988) | 254,487) | 272,528) | 226,944) | 227,663) | 182,731) | 187,909) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 2.83 | 2.93 | 4.34 | 4.43 | 4.12 | 4.72 | 4.17 | 3.75 | 2.91 | 2.80 | 2.53 | 3.19 | 2.84 | 3.19 | 3.26 | 3.67 | 3.40 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.95 | 0.70 | 0.61 | 0.86 | 0.93 | 0.86 | 0.76 | 0.83 | 0.90 | 0.92 | 0.84 | 1.08 | 1.17 | 0.85 | 1.01 | 1.31 | 1.09 | ||||||
| Analog Devices Inc. | 0.92 | 0.79 | 0.79 | 0.72 | 0.45 | 0.30 | 0.41 | 0.44 | 0.69 | 0.60 | 0.62 | 0.75 | 0.81 | 0.71 | 0.53 | 0.47 | 0.63 | ||||||
| Applied Materials Inc. | 1.06 | 1.12 | 1.26 | 1.10 | 1.06 | 0.93 | 0.79 | 0.65 | 0.56 | 0.35 | 0.52 | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | ||||||
| Broadcom Inc. | 0.45 | 0.56 | 0.52 | 0.49 | 0.58 | 1.92 | 1.64 | 1.54 | 1.69 | 1.76 | 1.49 | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | ||||||
| Intel Corp. | 0.65 | 0.62 | 0.69 | 0.91 | 0.78 | 0.89 | 0.87 | 0.89 | 1.01 | 0.88 | 0.81 | 0.99 | 1.32 | 1.03 | 1.17 | 1.00 | 0.93 | ||||||
| KLA Corp. | 0.96 | 0.97 | 0.96 | 0.73 | 0.88 | 0.87 | 0.85 | 0.82 | 0.94 | 0.94 | 0.91 | 1.01 | 1.04 | 1.19 | 1.20 | 1.14 | 1.17 | ||||||
| Lam Research Corp. | 1.14 | 1.35 | 1.28 | 1.32 | 1.21 | 1.28 | 1.19 | 0.99 | 0.84 | 0.77 | 1.00 | 1.32 | 1.19 | 1.25 | 1.02 | 1.03 | 1.21 | ||||||
| Micron Technology Inc. | 0.84 | 0.88 | 1.23 | 1.44 | 1.52 | 2.01 | 2.03 | 2.06 | 1.62 | 1.24 | 1.46 | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | ||||||
| NVIDIA Corp. | 2.07 | 2.44 | 2.01 | 1.55 | 2.11 | 2.03 | 1.92 | 2.25 | 3.66 | 4.89 | 5.34 | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | ||||||
| Qualcomm Inc. | 1.44 | 1.27 | 1.34 | 1.51 | 1.31 | 1.18 | 1.02 | 0.85 | 0.82 | 0.54 | 0.58 | 0.86 | 0.92 | 1.04 | 1.13 | 1.27 | 1.33 | ||||||
| Texas Instruments Inc. | 2.01 | 2.08 | 2.37 | 2.66 | 2.93 | 2.58 | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,026,664 ÷ 363,401 = 2.83
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited a generally upward trend from March 2021 to September 2024, increasing from approximately $639 million to a peak of around $1.46 billion. Notable growth phases occurred from March 2023 through September 2024. However, a significant decline is observed in December 2024, dropping to approximately $863 million, before partially recovering to around $1.03 billion by March 2025.
- Current Liabilities
- Current liabilities showed variability over the periods analyzed. Starting at roughly $188 million in March 2021, they experienced several fluctuations, peaking in March 2025 at about $363 million. The data reflect periods of increase and decrease but an overall upward trajectory in current liabilities across the timeframe, particularly notable from early 2024 onward.
- Cash Ratio
- The cash ratio fluctuated throughout the periods but maintained levels suggesting strong liquidity management. Initially high at 3.4 in March 2021, it dipped to a low point around 2.53 in September 2022, followed by a sustained increase reaching as high as 4.72 by December 2023. Subsequently, the ratio moderated again, declining to approximately 2.83 by March 2025. Overall, the cash ratio indicates that the company consistently maintained more than sufficient cash assets to cover current liabilities, although liquidity tightened toward the end of the period.
- Summary Insights
- The data depict a company with increasing cash assets and rising current liabilities, suggesting growth in operational scale or changes in working capital requirements. Despite fluctuations, liquidity remained strong throughout, as indicated by the high cash ratios surpassing 2.5 across all reported quarters. The sharp decrease in cash assets observed in late 2024, alongside the continued increase in current liabilities, corresponded with a decline in the cash ratio, indicating a temporary tightening of liquidity. Recovery in cash assets after that period mitigates concerns but warrants monitoring to ensure sustained financial stability.