Applied Materials Inc (AMAT)

Current 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
Total current assets	US$ in thousands	19,182,000	19,147,000	18,879,000	17,773,000	16,715,000	15,925,000	15,434,000	15,244,000	15,707,000	16,107,000	15,248,000	14,971,000	14,269,000	13,369,000	12,248,000	12,735,000	10,769,000	10,206,000	10,042,000	10,062,000
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
Current ratio		2.71	2.60	2.30	2.26	2.31	2.16	2.26	2.29	2.51	2.54	2.98	3.10	3.17	3.00	2.86	2.67	2.36	2.30	2.65	2.79

January 28, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $19,182,000K ÷ $7,076,000K
= 2.71

The current ratio of Applied Materials Inc. has been relatively stable over the past several quarters, ranging from 2.16 to 2.71. This indicates that the company has a strong ability to meet its short-term obligations with its current assets. A current ratio above 2 generally suggests that the company has more than enough current assets to cover its current liabilities, highlighting a healthy liquidity position. However, it is important to note that a consistently high current ratio could also indicate an inefficient use of assets, as excess liquidity may be better utilized in other areas of the business. Overall, Applied Materials Inc. appears to have a solid liquidity position based on its current ratio performance in recent quarters.