Applied Materials Inc (AMAT)
Quick ratio
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,264,000 | 8,022,000 | 8,022,000 | 8,288,000 | 8,288,000 | 7,085,000 | 7,085,000 | 6,854,000 | 6,854,000 | 6,132,000 | 6,132,000 | 6,025,000 | 6,025,000 | 4,588,000 | 3,547,000 | 3,547,000 | 1,995,000 | 1,995,000 | 2,956,000 | 3,331,000 |
| Short-term investments | US$ in thousands | 1,949,000 | 1,449,000 | 1,449,000 | 815,000 | 815,000 | 472,000 | 472,000 | 638,000 | 638,000 | 737,000 | 737,000 | 510,000 | 510,000 | 510,000 | 500,000 | 500,000 | 586,000 | 586,000 | 592,000 | 591,000 |
| Receivables | US$ in thousands | — | — | 5,354,000 | — | 5,021,000 | — | 5,001,000 | — | 5,011,000 | — | 5,577,000 | — | 5,648,000 | — | — | 5,847,000 | — | 6,529,000 | — | — |
| Total current liabilities | US$ in thousands | 7,736,000 | 8,468,000 | 8,468,000 | 7,228,000 | 7,228,000 | 6,884,000 | 6,884,000 | 7,076,000 | 7,076,000 | 7,372,000 | 7,372,000 | 8,224,000 | 8,224,000 | 7,871,000 | 7,250,000 | 7,250,000 | 7,379,000 | 7,379,000 | 6,833,000 | 6,650,000 |
| Quick ratio | 1.06 | 1.12 | 1.75 | 1.26 | 1.95 | 1.10 | 1.82 | 1.06 | 1.77 | 0.93 | 1.69 | 0.79 | 1.48 | 0.65 | 0.56 | 1.36 | 0.35 | 1.23 | 0.52 | 0.59 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,264,000K
+ $1,949,000K
+ $—K)
÷ $7,736,000K
= 1.06
The quick ratio of Applied Materials Inc, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuating trends over the reported periods.
On May 1, 2022, the quick ratio was 0.59, indicating that the company had $0.59 in highly liquid assets available to cover each dollar of current liabilities. The ratio decreased to 0.52 by July 31, 2022, suggesting a slight deterioration in short-term liquidity.
However, there was a significant improvement in liquidity as of October 30, 2022, with the quick ratio reaching 1.23, indicating that the company had more than enough liquid assets to cover its short-term obligations. This improvement was short-lived as the ratio dropped to 0.35 by October 31, 2022, reflecting a potential liquidity strain.
Subsequently, the quick ratio improved consistently, reaching 1.06 by January 31, 2024, and further increasing to 1.95 by July 28, 2024. These ratios indicate a strong ability to meet short-term obligations from liquid assets. The trend continued to be positive, with the quick ratio standing at 1.06 as of January 31, 2025, reflecting a healthy liquidity position for the company.
Overall, while the quick ratio of Applied Materials Inc experienced fluctuations over the reported periods, the company managed to significantly enhance its liquidity position, demonstrating an improved ability to meet short-term financial obligations with its liquid assets.
Peer comparison
Jan 31, 2025