Applied Materials Inc (AMAT)
Cash ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,022,000 | 8,022,000 | 6,132,000 | 6,132,000 | 1,995,000 |
| Short-term investments | US$ in thousands | 1,449,000 | 1,449,000 | 737,000 | 737,000 | 586,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 8,468,000 | 7,372,000 | 7,372,000 | 7,379,000 |
| Cash ratio | 1.12 | 1.12 | 0.93 | 0.93 | 0.35 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,022,000K
+ $1,449,000K)
÷ $8,468,000K
= 1.12
The cash ratio of Applied Materials Inc has shown a steady increase over the years, indicating an improving liquidity position. The ratio stood at 0.35 as of October 31, 2022, signifying that the company had $0.35 in cash and cash equivalents for every dollar of its current liabilities. By October 31, 2024, the cash ratio had increased to 1.12, indicating that the company had significantly improved its ability to meet short-term obligations using its available cash reserves. This positive trend suggests that Applied Materials Inc has been effectively managing its liquidity position and may be better positioned to weather potential financial disturbances in the future.
Peer comparison
Oct 31, 2024