Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Applied Materials Inc., liquidity ratios
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Applied Materials Inc. current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Applied Materials Inc. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Applied Materials Inc. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |
Current Ratio
Applied Materials Inc., current ratio calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 21,220) | 19,147) | 15,925) | 16,107) | 13,369) | 10,206) | |
| Current liabilities | 8,468) | 7,372) | 7,379) | 6,344) | 4,459) | 4,447) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.51 | 2.60 | 2.16 | 2.54 | 3.00 | 2.30 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.51 | 2.36 | 2.02 | 2.54 | 1.95 | |
| Analog Devices Inc. | 1.84 | 1.37 | 2.02 | 1.94 | 1.84 | 1.32 | |
| Broadcom Inc. | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 | |
| Intel Corp. | — | 1.54 | 1.57 | 2.10 | 1.91 | 1.40 | |
| KLA Corp. | 2.15 | 2.24 | 2.50 | 2.71 | 2.78 | 2.44 | |
| Lam Research Corp. | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | 3.61 | |
| Micron Technology Inc. | 2.64 | 4.46 | 2.89 | 3.10 | 2.71 | 2.58 | |
| Monolithic Power Systems Inc. | — | 7.74 | 5.36 | 4.96 | 5.73 | 6.67 | |
| NVIDIA Corp. | 4.17 | 3.52 | 6.65 | 4.09 | 7.67 | 7.94 | |
| Qualcomm Inc. | 2.40 | 2.33 | 1.75 | 1.68 | 2.14 | 1.88 | |
| Texas Instruments Inc. | — | 4.55 | 4.70 | 5.33 | 4.28 | 4.13 | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.46 | 2.35 | 2.47 | 2.47 | 2.05 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.41 | 1.37 | 1.55 | 1.71 | 1.66 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,220 ÷ 8,468 = 2.51
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Applied Materials Inc. current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Quick Ratio
Applied Materials Inc., quick ratio calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 8,022) | 6,132) | 1,995) | 4,995) | 5,351) | 3,129) | |
| Short-term investments | 1,449) | 737) | 586) | 464) | 387) | 489) | |
| Accounts receivable, net | 5,234) | 5,165) | 6,068) | 4,953) | 2,963) | 2,533) | |
| Total quick assets | 14,705) | 12,034) | 8,649) | 10,412) | 8,701) | 6,151) | |
| Current liabilities | 8,468) | 7,372) | 7,379) | 6,344) | 4,459) | 4,447) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.74 | 1.63 | 1.17 | 1.64 | 1.95 | 1.38 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.67 | 1.57 | 1.49 | 1.81 | 1.43 | |
| Analog Devices Inc. | 1.24 | 0.76 | 1.34 | 1.24 | 1.31 | 0.85 | |
| Broadcom Inc. | 0.82 | 2.34 | 2.18 | 2.27 | 1.56 | 1.21 | |
| Intel Corp. | — | 1.01 | 1.01 | 1.38 | 1.24 | 0.93 | |
| KLA Corp. | 1.36 | 1.33 | 1.57 | 1.81 | 1.82 | 1.54 | |
| Lam Research Corp. | 1.93 | 1.95 | 1.72 | 2.11 | 2.22 | 2.16 | |
| Micron Technology Inc. | 1.59 | 2.53 | 1.92 | 2.17 | 1.82 | 1.74 | |
| Monolithic Power Systems Inc. | — | 5.84 | 3.50 | 3.66 | 4.50 | 5.17 | |
| NVIDIA Corp. | 3.38 | 2.61 | 5.96 | 3.56 | 7.04 | 6.66 | |
| Qualcomm Inc. | 1.64 | 1.51 | 1.01 | 1.34 | 1.75 | 1.65 | |
| Texas Instruments Inc. | — | 3.12 | 3.67 | 4.45 | 3.34 | 3.04 | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.64 | 1.63 | 1.80 | 1.79 | 1.48 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.12 | 1.09 | 1.30 | 1.47 | 1.44 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,705 ÷ 8,468 = 1.74
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Applied Materials Inc. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
Cash Ratio
Applied Materials Inc., cash ratio calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 8,022) | 6,132) | 1,995) | 4,995) | 5,351) | 3,129) | |
| Short-term investments | 1,449) | 737) | 586) | 464) | 387) | 489) | |
| Total cash assets | 9,471) | 6,869) | 2,581) | 5,459) | 5,738) | 3,618) | |
| Current liabilities | 8,468) | 7,372) | 7,379) | 6,344) | 4,459) | 4,447) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 | 0.81 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.86 | 0.92 | 0.85 | 0.95 | 0.64 | |
| Analog Devices Inc. | 0.79 | 0.30 | 0.60 | 0.71 | 0.77 | 0.43 | |
| Broadcom Inc. | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 | |
| Intel Corp. | — | 0.89 | 0.88 | 1.03 | 0.97 | 0.59 | |
| KLA Corp. | 0.97 | 0.87 | 0.94 | 1.19 | 1.17 | 0.98 | |
| Lam Research Corp. | 1.35 | 1.28 | 0.77 | 1.25 | 1.55 | 1.54 | |
| Micron Technology Inc. | 0.88 | 2.01 | 1.24 | 1.34 | 1.23 | 1.24 | |
| Monolithic Power Systems Inc. | — | 4.86 | 2.80 | 3.19 | 4.05 | 4.64 | |
| NVIDIA Corp. | 2.44 | 2.03 | 4.89 | 2.95 | 6.11 | 5.58 | |
| Qualcomm Inc. | 1.27 | 1.18 | 0.54 | 1.04 | 1.29 | 1.37 | |
| Texas Instruments Inc. | — | 2.58 | 3.04 | 3.79 | 2.75 | 2.54 | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.24 | 1.15 | 1.31 | 1.33 | 1.04 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.70 | 0.66 | 0.89 | 1.07 | 1.01 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,471 ÷ 8,468 = 1.12
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Applied Materials Inc. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |