Quick Ratio

The quick ratio measures a company’s ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables, excluding inventory).

At 2.25x, Qorvo holds more than twice its current liabilities in these liquid assets, indicating a comfortable liquidity buffer. This level is well above the sector median of 1.32x, placing QRVO in the 70th percentile among Technology peers. However, the ratio has been decreasing over the last eight quarters; the year-over-year change is not available, but the quarter-over-quarter decline is -0.9% (from 2.27x to 2.25x). A high ratio paired with a downward trend suggests that while liquidity remains strong, the company is gradually consuming its buffer, which could signal rising short-term obligations or falling liquid assets. This pattern tempers the otherwise positive level: the buffer provides near-term safety, but the trend introduces a watch point for further deterioration. The decreasing direction supports the overall CAUTIOUS verdict, as the metric’s erosion aligns with the need for careful monitoring.

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