Applied Materials Inc (AMAT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 21,220,000 | 20,671,000 | 19,265,000 | 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 |
| 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 |
| Current ratio | 2.51 | 2.86 | 2.80 | 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 |
October 27, 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 remained relatively stable over the past few quarters, ranging from a low of 2.16 to a high of 3.17. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health and liquidity.
Applied Materials Inc's current ratio has generally been healthy, consistently above 2. This suggests that the company has a comfortable cushion of current assets to meet its short-term obligations. The peak current ratio of 3.17 in Jan 31, 2021, indicates a particularly strong liquidity position at that time. However, it is worth noting that the current ratio has fluctuated somewhat, with a slight downward trend in recent quarters.
Overall, Applied Materials Inc's current ratio indicates that the company is managing its short-term liquidity well and has the capacity to meet its near-term financial obligations.
Peer comparison
Oct 27, 2024