Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Return on Assets (ROA) since 2005
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Liquidity Ratios (Summary)
Applied Materials Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
- Current Ratio
- The current ratio exhibits a general downward trend from early 2021 through late 2022, decreasing from 3.17 to a low of around 2.16. Following this period, there is a moderate recovery trend, with the ratio rising to approximately 2.86 by mid-2024 before experiencing some fluctuations and settling near 2.61 at the end of the observed period in late 2025. This pattern indicates a gradual reduction in short-term liquidity in the earlier years, with improvements occurring in the more recent quarters, suggesting enhanced ability to cover current liabilities with current assets over time.
- Quick Ratio
- The quick ratio shows a consistent declining trend from 2.15 in early 2021 to a trough of 1.17 in late 2022, reflecting a decrease in liquid assets relative to current liabilities. However, from late 2022 through mid-2024, the quick ratio trends upward, reaching a peak of 1.95. This improvement suggests a strengthening in the liquid asset position excluding inventory. After mid-2024, there is a slight decline and stabilization in the ratio, ending marginally above 1.6 by late 2025. The fluctuations throughout the period point to variable management of liquid assets in relation to short-term obligations.
- Cash Ratio
- The cash ratio declines markedly from 1.47 in early 2021 to a low of 0.35 in late 2022, indicating a significant reduction in cash and cash equivalents relative to current liabilities. Subsequently, the ratio displays a steady recovery trend, climbing to 1.26 by mid-2024. The trend after this peak shows moderate fluctuation but remains above 0.8, finishing at 1.07 at the end of the observation period. Overall, the cash ratio's trajectory reveals an initial drawdown in the most liquid assets, followed by a concerted rebuilding phase, which enhances the immediate liquidity buffer available to meet short-term liabilities.
Current Ratio
Applied Materials Inc., current ratio calculation (quarterly data)
| Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | |||||||
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| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit an overall increasing trend over the periods analyzed. Starting from approximately $14.3 billion in early 2021, they progressively rose to reach above $20.8 billion by late 2025. Some fluctuations occur during the timeline, notably a slight dip between early 2024 and early 2025, but the general movement is upward, indicating growing liquidity and available short-term resources.
- Current Liabilities
- Current liabilities also show an increasing pattern, starting at about $4.5 billion in early 2021 and rising to nearly $8.0 billion by the end of 2025. This growth is less steady than that of current assets, with visible fluctuations including a peak in late 2024 followed by a moderate decline and subsequent rise again. The increase in liabilities is a factor to monitor in conjunction with asset growth for assessing short-term financial health.
- Current Ratio
- The current ratio begins at a high level of 3.17 and generally trends downward until stabilizing near the 2.2 to 2.3 range in the mid-2022 to early 2023 period. Following this, there is a modest recovery peaking at about 2.86 in mid-2024, before experiencing variability but mostly maintaining levels above 2.4 through late 2025. Despite the downward trend early on, the ratio remains comfortably above 2, indicating a strong ability to cover current liabilities with current assets throughout the period analyzed.
- Overall Analysis
- The company's liquidity position shows improvement in absolute current assets but also growing current liabilities, which reduces the current ratio initially. However, the firm maintains a healthy current ratio above the commonly accepted threshold of 2 throughout the period. The periodic fluctuations in both assets and liabilities suggest active working capital management in response to operational needs or market conditions. The robustness of the current ratio suggests adequate short-term financial stability despite the relative increase in liabilities.
Quick Ratio
Applied Materials Inc., quick ratio calculation (quarterly data)
| Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets exhibit an overall upward trend from January 2021 through October 2025. Initially, there is a modest increase from 9,668 million to over 10,412 million in late 2021, followed by a noticeable decline in the first half of 2022, reaching a low point around 8,504 million. From mid-2022 onward, quick assets recover steadily, with consistent growth leading to a peak of approximately 14,705 million in early 2025. A slight dip follows but levels off above 12,700 million by late 2025, indicating a general expansion of liquid assets over the five-year period.
- Trend in Current Liabilities
- Current liabilities increased sharply from 4,504 million in early 2021 to a peak of 7,871 million in the first quarter of 2023. Following this peak, liabilities fluctuate between roughly 6,800 million and 8,400 million without a clear long-term trend of either growth or reduction. The observed volatility suggests changes in short-term obligations but no sustained decrease or significant increase over the examined period.
- Trend in Quick Ratio
- The quick ratio declines from a strong starting point of 2.15 in January 2021 to a low around 1.17 by late 2022, reflecting a decrease in the company’s immediate liquidity relative to current liabilities. However, from this low, there is a continuous improvement through 2023 and into early 2025, with the ratio increasing to a peak near 1.95 before stabilizing between 1.6 and 1.8 through late 2025. This recovering quick ratio signals a strengthening in the company's liquidity position and ability to meet short-term obligations from liquid assets.
- Overall Liquidity Analysis
- The initial decrease in the quick ratio despite the general growth of total quick assets suggests that liabilities increased more rapidly than liquid assets in the early part of the period. The subsequent improvement in the quick ratio indicates efforts or natural adjustments to improve liquidity by either growing quick assets at a higher rate or controlling current liabilities. Despite some fluctuations in liabilities, the company maintains a quick ratio well above 1 for most of the period, which is indicative of an adequate liquidity buffer to cover immediate liabilities.
Cash Ratio
Applied Materials Inc., cash ratio calculation (quarterly data)
| Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited notable fluctuations over the period analyzed. Initially, the amount remained relatively stable around the 6,500 to 6,700 million U.S. dollar range during the early quarters of 2021. There was a decline beginning in late 2021 through most of 2022, reaching a low point near 2,500 million dollars in October 2022. Following this trough, cash assets showed a pronounced recovery trend starting from early 2023, rising steadily and peaking above 9,400 million dollars by April 2025. This upward movement after the low indicates a significant restoration of liquidity.
- Current Liabilities
- Current liabilities increased consistently from early 2021 through mid-2022, moving from approximately 4,500 million dollars to over 7,300 million dollars. After peaking around that level, liabilities fluctuated with slight decreases and increases but generally remained elevated between 7,000 and 8,500 million dollars for the remainder of the timeline. This elevated and relatively stable range after mid-2022 suggests a persistently high short-term debt or obligations load throughout the latter periods.
- Cash Ratio
- The cash ratio demonstrated a declining trend initially, starting strong at 1.47 in early 2021 and dropping sharply to the lowest point of 0.35 by October 2022. This indicates a decreasing ability to cover current liabilities with cash assets in that timeframe. However, from late 2022 onward, the cash ratio gradually recovered, surpassing 1.00 briefly between January 2024 and July 2024 and again approaching or slightly exceeding 1.00 by the end of the period in October 2025. Despite fluctuations, the ratio points to an improved liquidity position in the most recent periods, aligning with the rise in total cash assets.
- Overall Liquidity and Financial Position Insights
- The data reveals a period of deteriorating liquidity from mid-2021 through late 2022, characterized by rising current liabilities coupled with declining cash assets, which led to a declining cash ratio reaching well below 1.00. Beginning in early 2023, a reversal in this trend is apparent, with cash assets increasing significantly and the cash ratio improving accordingly. Although current liabilities remain elevated, the recovery in cash reserves strengthens the company's short-term financial stability. This suggests active measures to enhance liquidity and manage obligations more effectively starting from 2023 onward.