Applied Materials Inc (AMAT)
Cash ratio
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,022,000 | 8,288,000 | 7,085,000 | 6,854,000 | 6,132,000 | 6,025,000 | 4,588,000 | 3,547,000 | 1,995,000 | 2,956,000 | 3,331,000 | 5,264,000 | 4,995,000 | 6,066,000 | 6,305,000 | 6,213,000 | 5,351,000 | 4,350,000 | 5,281,000 | 3,424,000 |
| Short-term investments | US$ in thousands | 1,449,000 | 815,000 | 472,000 | 638,000 | 737,000 | 510,000 | 510,000 | 500,000 | 586,000 | 592,000 | 591,000 | 473,000 | 464,000 | 444,000 | 460,000 | 410,000 | 387,000 | 406,000 | 423,000 | 536,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 7,228,000 | 6,884,000 | 7,076,000 | 7,372,000 | 8,224,000 | 7,871,000 | 7,250,000 | 7,379,000 | 6,833,000 | 6,650,000 | 6,264,000 | 6,344,000 | 5,125,000 | 4,822,000 | 4,504,000 | 4,459,000 | 4,285,000 | 4,765,000 | 4,569,000 |
| Cash ratio | 1.12 | 1.26 | 1.10 | 1.06 | 0.93 | 0.79 | 0.65 | 0.56 | 0.35 | 0.52 | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | 1.29 | 1.11 | 1.20 | 0.87 |
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 of Applied Materials Inc has shown fluctuations over the past several quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Looking at the trend in Applied Materials Inc's cash ratio, we observe that there have been periods of improvement and decline. From January 2020 to July 2021, the cash ratio generally increased, indicating a better ability to cover short-term obligations with cash on hand. However, after July 2021, there was a decline in the cash ratio, reaching its lowest point in January 2023.
Subsequently, there was a gradual improvement in the cash ratio from January 2023 to July 2024. This suggests that Applied Materials Inc was able to increase its cash reserves relative to its short-term liabilities during this period.
The most recent cash ratio of 1.12 as of October 27, 2024, indicates that the company has $1.12 in cash and cash equivalents for every $1 of short-term liabilities, reflecting a favorable liquidity position at the end of the period under review.
Overall, while there have been fluctuations in the cash ratio of Applied Materials Inc, the upward trend in recent quarters suggests an improved capacity to meet short-term obligations with readily available cash resources.
Peer comparison
Oct 27, 2024