Applied Materials Inc (AMAT)
Quick ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,022,000 | 8,022,000 | 6,132,000 | 6,132,000 | 1,995,000 |
| Short-term investments | US$ in thousands | 1,449,000 | 1,449,000 | 737,000 | 737,000 | 586,000 |
| Receivables | US$ in thousands | — | 5,354,000 | — | 5,577,000 | — |
| Total current liabilities | US$ in thousands | 8,468,000 | 8,468,000 | 7,372,000 | 7,372,000 | 7,379,000 |
| Quick ratio | 1.12 | 1.75 | 0.93 | 1.69 | 0.35 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,022,000K
+ $1,449,000K
+ $—K)
÷ $8,468,000K
= 1.12
The quick ratio of Applied Materials Inc, a key liquidity ratio, has fluctuated over the past few years. As of October 31, 2022, the quick ratio stood at a low 0.35, indicating limited ability to cover short-term obligations using its most liquid assets. However, by October 29, 2023, the quick ratio improved significantly to 1.69, suggesting an enhanced capacity to meet short-term liabilities. Subsequently, the ratio dropped to 0.93 by October 31, 2023, possibly signaling a temporary decrease in liquidity.
In the following years, the quick ratio showed further improvement, reaching 1.75 by October 27, 2024, and then decreasing slightly to 1.12 by October 31, 2024. Overall, the upward trend in the quick ratio from 2022 to 2024 indicates an enhanced ability of Applied Materials Inc to meet its short-term obligations with its quick assets, although some fluctuations were observed during this period. It is important for investors and stakeholders to monitor this ratio to assess the company's short-term liquidity position.
Peer comparison
Oct 31, 2024