Quick Ratio

The quick ratio, which measures a company's ability to cover short-term liabilities with its most liquid assets (excluding inventory), currently stands at 1.24x, meaning Semtech has $1.24 in liquid assets for every $1 of current liabilities.

This figure sits slightly below the technology sector median of 1.32x, placing the company in the 46th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 12.7% from 1.42x to 1.24x. A quick ratio of 1.24x is still above 1.0x, indicating adequate short-term liquidity, but the downward trend suggests increasing pressure on cash and receivables relative to obligations. This combination of a below-median level and a deteriorating trend points to heightened short-term liquidity risk, which may introduce caution for investors. The metric partially contradicts the NEUTRAL verdict, as the weakening liquidity profile is a negative signal, but the overall assessment likely balances other positive factors to maintain a neutral stance.

Frequently Asked Questions

Closest Sector Peers