Qualcomm Inc. (NASDAQ:QCOM)

The analyzed financial ratios indicate evolving liquidity trends over the observed periods. The current ratio shows a general upward trajectory, suggesting an improving ability to cover short-term liabilities with current assets. Initially, the ratio decreases from 2.15 to around 1.61 by early 2022, followed by a notable recovery, peaking at 3.19 in mid-2025 before slightly declining to 2.82. This pattern reflects fluctuating but ultimately strengthening short-term financial stability.

Similarly, the quick ratio, which excludes inventories from current assets, follows a comparable pattern but at a lower level, indicating a more conservative measure of liquidity. It declines from 1.78 to a low of 0.9 in mid-2022, suggesting tighter liquidity conditions during that period. Thereafter, it steadily improves, reaching 2.02 before a minor dip to 1.84 by late 2025. This recovery implies enhanced liquid asset availability excluding inventory over time.

The cash ratio, the most stringent liquidity measure, shows a decline from 1.33 to 0.54 during the middle of the period, reflecting decreasing immediate cash and cash equivalent reserves relative to current liabilities. However, from late 2022 onward, it exhibits a strong rebound, increasing to 1.58 and then slightly retracting to 1.36 near the end of the series. This trend highlights an overall improvement in the company's capacity to meet short-term obligations solely with cash assets.

Current Ratio

Displays an initial decline followed by a significant rise with peak values above 3.0 later in the analyzed timeframe.

Quick Ratio

Mirrors the current ratio trend but stays below it, confirming more conservative liquidity with fluctuations and eventual recovery beyond 2.0.

Cash Ratio

Shows the steepest initial fall to under 0.6, then a strong and sustained increase above 1.3, indicating improving immediate liquidity.

In summary, all three liquidity ratios indicate initial pressure on the company's short-term financial flexibility during the early to mid phases, particularly notable in mid-2022. However, subsequent periods show a steady and marked improvement, demonstrating enhanced liquidity management and stronger positioning to cover current liabilities with liquid assets by the end of the timeframe.

The analysis of the quarterly financial data reveals distinct trends in the company's liquidity position over the observed periods. Current assets, measured in millions of US dollars, show fluctuations with an overall upward trajectory. Starting from 19,792 million at the end of 2020, current assets experienced some volatility but generally increased, reaching a peak of 26,080 million in June 2025 before slightly declining to 25,754 million by September 2025.

Current liabilities, also reported in millions of US dollars, exhibit a less consistent pattern. Initially recorded at 9,223 million, current liabilities increased notably in the middle periods, peaking at 13,432 million in March 2022. Subsequently, liabilities declined sharply, hitting a low of 7,800 million in June 2025 before rising again to 9,144 million by the last period. This variability indicates a dynamic management of short-term obligations.

The current ratio, a key liquidity metric calculated as current assets divided by current liabilities, reflects these changes. It started relatively strong at 2.15 at the end of 2020, decreased steadily through 2021 and early 2022, reaching a low of 1.61 on multiple occasions mid-2022. From then on, the ratio improved markedly, peaking at 3.19 in June 2025 before settling at 2.82 in the latest quarter. This trend suggests an overall strengthening of the company's ability to cover short-term liabilities with current assets, particularly from late 2022 onward.

In summary, the data shows that while current liabilities experienced significant fluctuations, the company's current assets generally grew, culminating in an enhanced liquidity position as demonstrated by the rising current ratio in the later periods. This improvement signals a more robust short-term financial health and potentially greater operational flexibility in managing working capital requirements.

The analysis of the quarterly financial data reveals several notable trends in the liquidity position of the company over the examined periods.

Total Quick Assets

The value of total quick assets experienced fluctuations throughout the periods. Initially, there was a slight decline from approximately $16.4 billion to $14.9 billion by the first quarter of 2021, followed by a mild recovery reaching around $15.9 billion in mid-2021. A downward trend was evident in early 2022, dipping to about $10.7 billion in June 2022, which represents a significant contraction. Subsequently, the quick assets showed a recovery path, progressively increasing from around $12 billion in late 2022 to peak near $17.9 billion by late 2024. In the last few quarters, the values exhibited some variability but generally remained elevated compared to earlier periods.

Current Liabilities

Current liabilities demonstrated a pattern of initial growth, rising steadily from approximately $9.2 billion in late 2020 to a peak near $13.4 billion in the first quarter of 2022. After this peak, liabilities contracted noticeably, falling to roughly $7.8 billion by the first quarter of 2023. This was followed by periods of moderate increase and stabilization, with values fluctuating between $9 billion and $10.5 billion through 2024 and early 2025. Toward the final quarters observed, liabilities decreased again to about $7.8 billion before experiencing a slight uptick.

Quick Ratio

The quick ratio, which measures the company's short-term liquidity, correlated with the trends observed in quick assets and current liabilities. Initially, it declined from 1.78 to a low of 0.90 in mid-2022, indicating a reduction in liquid asset coverage relative to liabilities. Following this low point, the ratio improved markedly, climbing steadily to reach 2.02 in mid-2025. This ratio above 1 suggests an enhancement in the company’s ability to meet short-term obligations without relying on inventory sales. The latter quarters exhibited a slight decrease, though the ratio remained comfortably above 1.80.

Overall, the data indicate that the company experienced a period of constrained liquidity through 2021 and early 2022, marked by decreased quick assets and increased current liabilities. However, from mid-2022 onwards, there has been a notable improvement in liquidity positions, illustrated by the recovery and growth in total quick assets coupled with the reduction and stabilization of current liabilities. This has led to a generally strengthening quick ratio, signaling a healthier short-term financial standing entering the most recent periods.

The analysis of the quarterly financial data reveals a fluctuating but overall resilient liquidity position over the observed periods.

Total Cash Assets

The total cash assets demonstrate variability, starting at approximately $12.3 billion and showing fluctuations throughout the quarters. Notably, there is a decline during the mid-period quarters around 2022, reaching lows near $6.4 billion and $6.7 billion, before rebounding significantly in later quarters to reach values over $14 billion. This pattern indicates intermittent periods of cash depletion followed by recovery and strengthening of cash reserves toward the end of the timeline.

Current Liabilities

Current liabilities similarly exhibit variable trends, initially increasing from about $9.2 billion to a peak of approximately $13.4 billion around the early part of 2022. Subsequently, liabilities show a general downward trend with some fluctuations, decreasing to lows near $7.8 billion before edging upward again near the end of the timeline. These variations suggest shifting short-term obligations possibly linked to operational and financing activities.

Cash Ratio

The cash ratio follows a pattern reflecting the dynamics between cash assets and current liabilities. At the start, it is relatively strong above 1.3, indicating more than adequate cash to cover current liabilities. It then declines below 1.0 during mid-period quarters, reaching as low as 0.54, which suggests reduced immediate liquidity and potential pressure on short-term financial flexibility. However, after this dip, the cash ratio steadily improves, climbing above 1.5 in some recent quarters. This improvement indicates a reinforced liquidity position with cash assets comfortably exceeding current liabilities by a significant margin.

Overall, the liquidity analysis reveals periods of strain followed by strategic recovery. The mid-period decrease in cash assets alongside peak current liabilities highlights intervals of tightened liquidity, while subsequent quarters depict deliberate strengthening of cash reserves relative to short-term obligations. This pattern suggests active liquidity management aimed at maintaining robust financial stability across varying operational circumstances.