Applied Materials Inc (AMAT)
Cash ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,022,000 | 6,132,000 | 1,995,000 | 4,995,000 | 5,351,000 |
| Short-term investments | US$ in thousands | 1,449,000 | 737,000 | 586,000 | 464,000 | 387,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 7,372,000 | 7,379,000 | 6,344,000 | 4,459,000 |
| Cash ratio | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 |
October 27, 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 for Applied Materials Inc has fluctuated over the past five years. In the most recent period ending October 27, 2024, the cash ratio stood at 1.12, indicating an improvement in the company's short-term liquidity position compared to the prior year when it was 0.93. This suggests that Applied Materials had sufficient cash and cash equivalents to cover its current liabilities comfortably during the latest period.
Looking back, the cash ratio was relatively low in the preceding year, October 30, 2022, at 0.35, which may have raised concerns about the company's ability to meet its short-term obligations through available cash resources. However, it increased to 0.86 in the following year, October 31, 2021, showing a positive trend in liquidity management.
Notably, the cash ratio was relatively high on October 25, 2020, at 1.29, indicating a strong liquidity position that year. Overall, the fluctuation in the cash ratio reflects changes in the company's cash holdings and short-term obligations over the five-year period, highlighting the importance of monitoring liquidity levels for assessing financial health and ability to meet immediate funding needs.
Peer comparison
Oct 27, 2024