Advanced Micro Devices Inc (AMD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,933,000 | 4,835,000 | 2,535,000 | 1,595,000 | 1,466,000 |
| Short-term investments | US$ in thousands | 1,840,000 | 1,020,000 | 1,073,000 | 695,000 | 37,000 |
| Total current liabilities | US$ in thousands | 6,689,000 | 6,369,000 | 4,240,000 | 2,417,000 | 2,359,000 |
| Cash ratio | 0.86 | 0.92 | 0.85 | 0.95 | 0.64 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,933,000K
+ $1,840,000K)
÷ $6,689,000K
= 0.86
The cash ratio for Advanced Micro Devices Inc has shown some fluctuation over the past five years. In 2023, the cash ratio stands at 0.86, slightly lower than the previous year's ratio of 0.92. This indicates that AMD's ability to cover its short-term liabilities with its cash and cash equivalents has decreased slightly.
Comparing the current ratio to earlier years, we see that in 2021 and 2020, the cash ratio was 0.85 and 0.95, respectively, reflecting a relatively stable financial position during those years. However, in 2019, the cash ratio was notably lower at 0.64, indicating a lower level of liquidity relative to the more recent years.
Overall, the cash ratio provides insight into AMD's liquidity position, with a ratio above 1 indicating that the company has more cash on hand than short-term liabilities. Despite some fluctuations, AMD has generally maintained a healthy cash position relative to its short-term obligations over the past five years.
Peer comparison
Dec 31, 2023