Applied Materials Inc (AMAT)
Current ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,147,000 | 15,925,000 | 16,107,000 | 13,369,000 | 10,206,000 |
| Total current liabilities | US$ in thousands | 7,372,000 | 7,379,000 | 6,344,000 | 4,459,000 | 4,447,000 |
| Current ratio | 2.60 | 2.16 | 2.54 | 3.00 | 2.30 |
October 29, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,147,000K ÷ $7,372,000K
= 2.60
The current ratio is a key financial ratio that measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, while a lower ratio may signal potential liquidity challenges.
Based on the data provided for Applied Materials Inc., the current ratio has fluctuated over the past five years, as follows:
- Oct 29, 2023: 2.60
- Oct 30, 2022: 2.16
- Oct 31, 2021: 2.54
- Oct 25, 2020: 3.00
- Oct 27, 2019: 2.30
The trend in the current ratio indicates that the company's short-term liquidity position has varied over the years. In 2020, the current ratio was at its highest point of 3.00, signaling a significant ability to cover short-term obligations with current assets. However, in 2022, the ratio decreased to 2.16, suggesting a potential decrease in liquidity.
The current ratio for 2023 has increased to 2.60, indicating an improvement in liquidity from the prior year. This suggests that Applied Materials Inc. has a better ability to cover its current liabilities with its current assets as of the most recent reporting period.
Overall, while the company has experienced some fluctuations in its current ratio over the past five years, the current ratio for the most recent year (2023) demonstrates an improved liquidity position, which is a positive indication for the company's short-term financial health and ability to meet its obligations.
Peer comparison
Oct 29, 2023