Advanced Micro Devices Inc (AMD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,787,000 | 3,933,000 | 4,835,000 | 2,535,000 | 1,595,000 |
| Short-term investments | US$ in thousands | 1,345,000 | 1,840,000 | 1,020,000 | 1,073,000 | 695,000 |
| Receivables | US$ in thousands | 6,820,000 | 6,476,000 | 5,226,000 | 3,035,000 | 2,189,000 |
| Total current liabilities | US$ in thousands | 7,281,000 | 6,689,000 | 6,369,000 | 4,240,000 | 2,417,000 |
| Quick ratio | 1.64 | 1.83 | 1.74 | 1.57 | 1.85 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,787,000K
+ $1,345,000K
+ $6,820,000K)
÷ $7,281,000K
= 1.64
The quick ratio of Advanced Micro Devices Inc has displayed some fluctuation over the years based on the provided data. As of December 31, 2020, the quick ratio stood at 1.85, indicating a healthy level of liquidity where the company had $1.85 in quick assets to cover each dollar of current liabilities. However, by the end of 2021, the quick ratio decreased to 1.57, suggesting a slight dip in the company's ability to meet its short-term obligations using only its most liquid assets.
Subsequently, by December 31, 2022, the quick ratio improved to 1.74, indicating a better liquidity position compared to the previous year. This improvement may imply that the company managed its current assets and liabilities more efficiently during that period. The quick ratio further increased to 1.83 by the end of 2023, indicating a continued strengthening of the company's ability to meet its short-term obligations with its quick assets.
However, by the end of 2024, the quick ratio decreased to 1.64, signaling a decrease in liquidity compared to the previous year. Even though the quick ratio is still above 1, reflecting the company's ability to cover its current liabilities with quick assets, this decline might prompt further analysis into the company's liquidity management and financial efficiency.
In conclusion, while the quick ratio of Advanced Micro Devices Inc has shown fluctuations over the years, overall, it has remained above 1, suggesting the company's ability to meet its short-term obligations using its most liquid assets with a healthy margin.
Peer comparison
Dec 31, 2024