Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
NXP Semiconductors N.V., liquidity ratios (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.15 | 1.85 | 2.13 | 1.37 | 2.26 | 1.78 | |||
| Quick ratio | 1.54 | 1.27 | 1.53 | 0.95 | 1.67 | 1.18 | |||
| Cash ratio | 1.21 | 0.94 | 1.15 | 0.67 | 1.25 | 0.81 |
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
- Current Ratio
- The current ratio exhibited fluctuations throughout the observed periods. Starting at 1.78, it increased notably to 2.26 in the second quarter, then declined to 1.37 in the third quarter. Subsequently, it rose again to 2.13 by the end of the year, followed by a slight decrease to 1.85 in the first quarter of 2022, and a subsequent increase to 2.15 in the second quarter of 2022. This pattern indicates variability in the company's ability to cover its short-term liabilities with current assets, with peaks consistently above 2, suggesting periods of strong liquidity.
- Quick Ratio
- The quick ratio mirrored the current ratio in its general pattern of fluctuation, though with slightly lower values throughout. Beginning at 1.18, it increased to 1.67 in the second quarter of 2021, then dropped to 0.95 in the third quarter. It recovered to 1.53 by the year-end and maintained a relatively stable range with a slight increase to 1.54 by the second quarter of 2022. This indicates that the company maintained a solid position in terms of liquid assets relative to current liabilities, despite some mid-year volatility.
- Cash Ratio
- The cash ratio also showed a similar trend, starting at 0.81 and rising to 1.25 in the second quarter of 2021. It then decreased to 0.67 in the third quarter, rebounds to 1.15 at the end of the year, and experienced minor fluctuations thereafter, ending at 1.21 in the second quarter of 2022. The values above 1 at several points suggest the company held a strong cash position relative to its current liabilities during those times, indicating robust short-term financial stability.
Current Ratio
NXP Semiconductors N.V., current ratio calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Current assets | 6,320) | 5,275) | 5,228) | 4,721) | 5,291) | 4,024) | |||
| Current liabilities | 2,941) | 2,845) | 2,452) | 3,438) | 2,336) | 2,265) | |||
| Liquidity Ratio | |||||||||
| Current ratio1 | 2.15 | 1.85 | 2.13 | 1.37 | 2.26 | 1.78 | |||
| Benchmarks | |||||||||
| Current Ratio, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 2.44 | 2.40 | 2.02 | 2.24 | 2.70 | 2.51 | |||
| Analog Devices Inc. | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | |||
| Applied Materials Inc. | 2.29 | 2.51 | 2.54 | 2.98 | 3.10 | 3.17 | |||
| Broadcom Inc. | 2.14 | 2.44 | 2.64 | 2.41 | 2.21 | 2.14 | |||
| Intel Corp. | 1.86 | 2.13 | 2.10 | 2.07 | 1.99 | 1.90 | |||
| KLA Corp. | 2.41 | 2.44 | 2.71 | 2.66 | 2.59 | 2.72 | |||
| Lam Research Corp. | 3.13 | 3.27 | 3.30 | 3.13 | 3.19 | 3.31 | |||
| Micron Technology Inc. | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | |||
| NVIDIA Corp. | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | |||
| Qualcomm Inc. | 1.61 | 1.65 | 1.68 | 1.72 | 2.02 | 2.15 | |||
| Texas Instruments Inc. | 5.09 | 5.54 | 5.33 | 5.63 | 5.08 | 6.12 | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,320 ÷ 2,941 = 2.15
2 Click competitor name to see calculations.
The quarterly financial data reveals several noteworthy trends in the company's liquidity position over the observed periods.
- Current Assets
- Current assets exhibited an overall upward trajectory, starting at 4,024 million US dollars and reaching 6,320 million US dollars by the last recorded quarter. Although there were fluctuations, such as a decrease from 5,291 million in the second quarter of 2021 to 4,721 million in the third quarter of 2021, the general pattern shows growth, particularly notable in the final quarter with a significant increase.
- Current Liabilities
- Current liabilities experienced fluctuations without a consistent upward or downward trend. Starting from 2,265 million US dollars, liabilities peaked at 3,438 million in the third quarter of 2021 before decreasing again and stabilizing around 2,845 to 2,941 million in the last two quarters. This volatility suggests some variability in short-term obligations during the periods observed.
- Current Ratio
- The current ratio reflects the relationship between current assets and current liabilities and is a measure of short-term liquidity. The ratio showed variation, with a low point of 1.37 in the third quarter of 2021, indicating a tighter liquidity position at that time. Recovery followed, with the ratio increasing to above 2 in the second and fourth quarters of 2021 and again in the second quarter of 2022. The fluctuations suggest periods of varying liquidity strength, with recent quarters indicating a relatively healthy liquidity buffer.
Overall, the company appears to have strengthened its liquidity position toward the later quarters, supported by increasing current assets and a manageable level of current liabilities. The current ratio's recovery after a mid-period dip highlights improved short-term financial stability.
Quick Ratio
NXP Semiconductors N.V., quick ratio calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Cash and cash equivalents | 3,545) | 2,683) | 2,830) | 2,303) | 2,910) | 1,842) | |||
| Accounts receivables, net | 996) | 925) | 923) | 979) | 991) | 833) | |||
| Total quick assets | 4,541) | 3,608) | 3,753) | 3,282) | 3,901) | 2,675) | |||
| Current liabilities | 2,941) | 2,845) | 2,452) | 3,438) | 2,336) | 2,265) | |||
| Liquidity Ratio | |||||||||
| Quick ratio1 | 1.54 | 1.27 | 1.53 | 0.95 | 1.67 | 1.18 | |||
| Benchmarks | |||||||||
| Quick Ratio, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 1.82 | 1.83 | 1.49 | 1.64 | 2.01 | 1.85 | |||
| Analog Devices Inc. | 1.44 | 1.54 | 1.24 | 0.82 | 0.76 | 1.12 | |||
| Applied Materials Inc. | 1.32 | 1.62 | 1.64 | 2.02 | 2.10 | 2.15 | |||
| Broadcom Inc. | 1.75 | 2.03 | 2.27 | 2.05 | 1.86 | 1.80 | |||
| Intel Corp. | 1.22 | 1.56 | 1.38 | 1.46 | 1.30 | 1.23 | |||
| KLA Corp. | 1.63 | 1.62 | 1.81 | 1.80 | 1.74 | 1.76 | |||
| Lam Research Corp. | 2.20 | 2.18 | 2.11 | 1.79 | 1.83 | 1.89 | |||
| Micron Technology Inc. | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | |||
| NVIDIA Corp. | 5.22 | 3.92 | 3.56 | 3.46 | 5.42 | 9.60 | |||
| Qualcomm Inc. | 1.16 | 1.25 | 1.34 | 1.38 | 1.64 | 1.78 | |||
| Texas Instruments Inc. | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,541 ÷ 2,941 = 1.54
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- Total quick assets exhibited fluctuations over the six quarters. Starting at $2,675 million in April 2021, there was a sharp increase to $3,901 million in July 2021, followed by a decline to $3,282 million in October 2021. Subsequently, the assets rose again to $3,753 million by the end of December 2021. In 2022, the figures showed some variation with a slight decrease to $3,608 million in April and then a notable increase reaching $4,541 million by July 2022. Overall, the trend points to a general upward movement in total quick assets with some interim volatility.
- Trend in Current Liabilities
- Current liabilities generally increased across the examined period. Beginning at $2,265 million in April 2021, the amount rose moderately to $2,336 million in July. There was a significant spike to $3,438 million in October 2021, after which the liabilities dropped to $2,452 million in December 2021. Going into 2022, current liabilities steadily increased again, reaching $2,845 million in April and $2,941 million in July 2022. This pattern suggests some variability, particularly in late 2021, but an overall upward trajectory in current liabilities.
- Analysis of the Quick Ratio
- The quick ratio, which measures the company's short-term liquidity by comparing quick assets to current liabilities, demonstrated notable variability. It started at 1.18 in April 2021 and peaked at 1.67 in July 2021, reflecting improved liquidity during this period. However, the ratio dropped significantly to 0.95 in October 2021, indicating that quick assets were less sufficient to cover current liabilities at that time. A recovery followed with the ratio rising to 1.53 in December 2021. In 2022, the quick ratio decreased slightly to 1.27 in April before increasing again to 1.54 in July. These fluctuations highlight periods of changing liquidity conditions, with an overall satisfactory ability to cover short-term obligations by the end of the observed timeframe.
- Summary of Key Insights
- The data reveals a company managing fluctuations in both liquidity and short-term obligations. Total quick assets generally trended upwards, supporting improved liquidity capacity. Current liabilities showed an overall increasing tendency but with variability, particularly a marked rise and then decline in late 2021. The quick ratio's oscillations demonstrate intermittent liquidity challenges, most notably in the third quarter of 2021, but an overall recovery by mid-2022. The most recent data indicates stronger liquidity relative to current liabilities, suggesting improved financial stability in the short term.
Cash Ratio
NXP Semiconductors N.V., cash ratio calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Cash and cash equivalents | 3,545) | 2,683) | 2,830) | 2,303) | 2,910) | 1,842) | |||
| Total cash assets | 3,545) | 2,683) | 2,830) | 2,303) | 2,910) | 1,842) | |||
| Current liabilities | 2,941) | 2,845) | 2,452) | 3,438) | 2,336) | 2,265) | |||
| Liquidity Ratio | |||||||||
| Cash ratio1 | 1.21 | 0.94 | 1.15 | 0.67 | 1.25 | 0.81 | |||
| Benchmarks | |||||||||
| Cash Ratio, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 1.08 | 1.17 | 0.85 | 1.01 | 1.31 | 1.09 | |||
| Analog Devices Inc. | 0.75 | 0.81 | 0.71 | 0.53 | 0.47 | 0.63 | |||
| Applied Materials Inc. | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | |||
| Broadcom Inc. | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | |||
| Intel Corp. | 0.99 | 1.32 | 1.03 | 1.17 | 1.00 | 0.93 | |||
| KLA Corp. | 1.01 | 1.04 | 1.19 | 1.20 | 1.14 | 1.17 | |||
| Lam Research Corp. | 1.32 | 1.19 | 1.25 | 1.02 | 1.03 | 1.21 | |||
| Micron Technology Inc. | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | |||
| NVIDIA Corp. | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | |||
| Qualcomm Inc. | 0.86 | 0.92 | 1.04 | 1.13 | 1.27 | 1.33 | |||
| Texas Instruments Inc. | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,545 ÷ 2,941 = 1.21
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrated variability over the observed periods. Initially, there was a significant increase from 1,842 million USD to 2,910 million USD between the first and second quarters. This was followed by a decline to 2,303 million USD in the third quarter before rising again to 2,830 million USD at year-end. Moving into the next fiscal year, total cash assets slightly decreased to 2,683 million USD in the first quarter, then experienced a notable increase reaching 3,545 million USD by the second quarter.
- Current Liabilities
- Current liabilities exhibited fluctuating trends across the periods. Starting at 2,265 million USD, the amount rose modestly to 2,336 million USD, then sharply increased to 3,438 million USD in the third quarter before falling back to 2,452 million USD at year-end. In the subsequent quarters, current liabilities increased steadily to 2,845 million USD and then to 2,941 million USD.
- Cash Ratio
- The cash ratio followed an inconsistent pattern similar to cash assets and liabilities. It began at 0.81, representing a relatively moderate liquidity position. This ratio improved significantly to 1.25 in the second quarter, indicating strong short-term liquidity. However, it declined to 0.67 in the third quarter, reflecting a less favorable liquidity state, before recovering to 1.15 at year-end. In the following year's quarters, the cash ratio showed a slight dip to 0.94, followed by an improvement to 1.21, indicating overall adequate capacity to cover short-term liabilities with cash and cash equivalents.