Applied Materials Inc (AMAT)
Quick ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,022,000 | 6,132,000 | 1,995,000 | 4,995,000 | 5,351,000 |
| Short-term investments | US$ in thousands | 1,449,000 | 737,000 | 586,000 | 464,000 | 387,000 |
| Receivables | US$ in thousands | 5,354,000 | 5,577,000 | 6,529,000 | 5,546,000 | 3,125,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 7,372,000 | 7,379,000 | 6,344,000 | 4,459,000 |
| Quick ratio | 1.75 | 1.69 | 1.23 | 1.73 | 1.99 |
October 27, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,022,000K
+ $1,449,000K
+ $5,354,000K)
÷ $8,468,000K
= 1.75
The quick ratio of Applied Materials Inc has shown fluctuating trends over the past five years. In 2024, the quick ratio stands at 1.75, indicating the company's ability to meet its short-term obligations with its most liquid assets. This is a positive sign as it shows an improvement compared to the previous year's quick ratio of 1.69.
In 2023, the quick ratio was 1.69, suggesting that the company had $1.69 of liquid assets available to cover each dollar of its current liabilities. This ratio was slightly lower compared to 2022 when the quick ratio was 1.23.
The quick ratio significantly increased in 2021 to 1.73 from 1.99 in 2020. This indicates that in 2021, Applied Materials Inc had a higher proportion of liquid assets relative to its current liabilities, which is a positive indicator of financial health.
Overall, the quick ratio of Applied Materials Inc has exhibited some variability but has generally remained above 1.0 in the past five years, suggesting that the company has had an adequate level of liquidity to meet its short-term obligations. It is important for investors and analysts to monitor this ratio to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Oct 27, 2024