Applied Materials Inc (AMAT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,854,000 | 6,132,000 | 6,025,000 | 4,588,000 | 3,547,000 | 1,995,000 | 2,956,000 | 3,331,000 | 5,264,000 | 4,995,000 | 6,066,000 | 6,305,000 | 6,213,000 | 5,351,000 | 4,350,000 | 5,281,000 | 3,424,000 | 3,129,000 | 3,014,000 | 3,116,000 |
| Short-term investments | US$ in thousands | 638,000 | 737,000 | 510,000 | 510,000 | 500,000 | 586,000 | 592,000 | 591,000 | 473,000 | 464,000 | 444,000 | 460,000 | 410,000 | 387,000 | 406,000 | 423,000 | 536,000 | 489,000 | 547,000 | 507,000 |
| Receivables | US$ in thousands | 5,011,000 | 5,577,000 | 5,648,000 | 5,933,000 | 5,847,000 | 6,529,000 | 5,532,000 | — | 4,789,000 | 5,546,000 | — | — | 3,212,000 | 3,125,000 | 2,965,000 | 2,749,000 | 2,796,000 | 2,629,000 | 2,455,000 | 2,329,000 |
| 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 |
| Quick ratio | 1.77 | 1.69 | 1.48 | 1.40 | 1.36 | 1.23 | 1.33 | 0.59 | 1.68 | 1.73 | 1.27 | 1.40 | 2.18 | 1.99 | 1.80 | 1.77 | 1.48 | 1.40 | 1.59 | 1.65 |
January 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,854,000K
+ $638,000K
+ $5,011,000K)
÷ $7,076,000K
= 1.77
The quick ratio of Applied Materials Inc. has shown a generally positive trend over the past eight quarters, indicating the company's improving ability to meet its short-term obligations using its most liquid assets. The quick ratio has consistently remained above 1, which suggests the company has an adequate level of liquid assets to cover its current liabilities.
The quick ratio increased from 1.35 in Q3 2022 to 1.91 in Q1 2024, indicating a significant improvement in the company's liquidity position. This improvement can be attributed to an increase in the company's liquid assets relative to its current liabilities.
However, it is important to note that there was a slight decrease in the quick ratio from Q1 2024 to Q4 2023, indicating a potential decrease in liquidity during that period. Despite this minor fluctuation, the quick ratio has generally remained at healthy levels above 1.5 over the past few quarters.
Overall, the trend in Applied Materials Inc.'s quick ratio suggests that the company has been managing its liquidity effectively and is in a strong position to meet its short-term financial obligations.
Peer comparison
Jan 28, 2024