Applied Materials Inc (AMAT)
Cash ratio
| 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 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 3,129,000 | 3,014,000 | 3,116,000 |
| Short-term investments | US$ in thousands | 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 | 489,000 | 547,000 | 507,000 |
| Total current liabilities | US$ in thousands | 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 | 4,447,000 | 3,785,000 | 3,605,000 |
| Cash ratio | 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 | 0.81 | 0.94 | 1.00 |
January 28, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,854,000K
+ $638,000K)
÷ $7,076,000K
= 1.06
The cash ratio of Applied Materials Inc. has exhibited a generally positive trend over the past eight quarters, indicating the company's increasing ability to cover its short-term obligations with its cash and cash equivalents. From Q2 2022 to Q1 2024, the cash ratio has gradually risen from 0.73 to 1.25, showcasing a steady improvement in liquidity management.
The significant increase in the cash ratio from Q4 2022 to Q1 2023, where it jumped from 0.53 to 0.73, suggests a notable strengthening of the company's position in the first quarter of 2023. This positive momentum was sustained in subsequent quarters, with the cash ratio continuing to rise, reaching its peak at 1.25 in Q1 2024.
Overall, the upward trajectory of Applied Materials Inc.'s cash ratio indicates a healthy financial position, with the company holding sufficient liquid assets to meet its short-term obligations. This trend reflects effective cash management practices and prudent financial planning by the company.
Peer comparison
Jan 28, 2024