Advanced Micro Devices Inc (AMD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 6,476,000 | 5,226,000 | 3,035,000 | 2,189,000 | 2,056,000 |
| Total current liabilities | US$ in thousands | 6,689,000 | 6,369,000 | 4,240,000 | 2,417,000 | 2,359,000 |
| Quick ratio | 1.83 | 1.74 | 1.57 | 1.85 | 1.51 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,933,000K
+ $1,840,000K
+ $6,476,000K)
÷ $6,689,000K
= 1.83
The quick ratio of Advanced Micro Devices Inc has shown some fluctuation over the past five years. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio improved to 1.83 from 1.74 in 2022, indicating a stronger ability to cover short-term liabilities without relying heavily on inventory. This suggests that the company may have more liquid assets available to meet its immediate financial obligations.
In 2021 and 2019, the quick ratio was at 1.57 and 1.51 respectively, which indicates a slightly lower liquidity position compared to the more recent years. This could imply that the company had relatively less liquid assets compared to its short-term obligations during those periods.
In 2020, the quick ratio was at 1.85, reflecting a stronger liquidity position compared to the other years, indicating that the company had a higher level of liquid assets relative to its current liabilities at that time.
Overall, the trend in Advanced Micro Devices Inc's quick ratio indicates some variability in its liquidity position over the years, with improvements seen in recent times, which could be a positive sign for the company's short-term financial health.
Peer comparison
Dec 31, 2023