COHU Quick Ratio Analysis

The quick ratio measures liquid assets (cash, marketable securities, and accounts receivable) available to cover each $1 of current liabilities, so COHU's 2.49x means it holds $2.49 in liquid assets per $1 of short-term obligations.

This is well above the sector median of 0.72x, placing COHU at the 93rd percentile among peers, indicating unusually high short-term liquidity. Year-over-year change is N/A, but quarter-over-quarter the ratio fell by 6.4%, dropping from 2.66x to 2.49x; this is the only trend data available. The high level provides a strong buffer against liquidity stress, while the modest quarterly decline suggests a slight reduction in that buffer rather than a sharp deterioration. For investment risk, the combination of a very high ratio and a small downward move implies low near-term solvency risk, but limited upside from further liquidity gains. This metric supports the overall CAUTIOUS verdict because strong liquidity alone does not signal growth or profitability, and the downward drift warrants watching.

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