Applied Materials Inc (AMAT)
Current ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 21,220,000 | 21,220,000 | 19,147,000 | 19,147,000 | 15,925,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 8,468,000 | 7,372,000 | 7,372,000 | 7,379,000 |
| Current ratio | 2.51 | 2.51 | 2.60 | 2.60 | 2.16 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $21,220,000K ÷ $8,468,000K
= 2.51
The current ratio of Applied Materials Inc has demonstrated stability and consistency over the past five periods. The ratio has ranged from 2.16 to 2.60, indicating that the company has maintained a healthy ability to meet its short-term obligations using its current assets. This suggests that Applied Materials Inc has a strong liquidity position, with current assets more than covering current liabilities, providing a buffer against potential financial challenges. The gradual increase in the current ratio over the periods indicates an improvement in the company's short-term liquidity management, which may indicate efficient working capital management practices. Overall, the current ratio trend for Applied Materials Inc reflects a positive financial standing and suggests a strong ability to cover short-term obligations.
Peer comparison
Oct 31, 2024