Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Advanced Micro Devices Inc., liquidity ratios
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.54 | 1.95 | 1.78 | 1.76 | 1.88 | |
| Quick ratio | 1.81 | 1.43 | 1.23 | 1.09 | 1.19 | |
| Cash ratio | 0.95 | 0.64 | 0.58 | 0.80 | 0.94 |
Based on: 10-K (filing date: 2021-01-29), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Advanced Micro Devices Inc.’s current ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Advanced Micro Devices Inc.’s quick ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Advanced Micro Devices Inc.’s cash ratio improved from 2018 to 2019 and from 2019 to 2020. |
Current Ratio
Advanced Micro Devices Inc., current ratio calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 6,143 | 4,597 | 3,540 | 2,622 | 2,530 | |
| Current liabilities | 2,417 | 2,359 | 1,984 | 1,486 | 1,346 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.54 | 1.95 | 1.78 | 1.76 | 1.88 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 1.84 | 1.32 | 1.50 | 1.47 | 6.35 | |
| Apple Inc. | 1.36 | 1.54 | 1.12 | 1.28 | 1.35 | |
| Applied Materials Inc. | 3.00 | 2.30 | 2.64 | 3.14 | 2.30 | |
| Broadcom Inc. | 1.87 | 1.44 | 3.90 | 6.26 | 2.31 | |
| Cisco Systems Inc. | 1.72 | 1.51 | 2.29 | 3.03 | 3.16 | |
| Intel Corp. | 1.91 | 1.40 | 1.73 | 1.69 | 1.75 | |
| Lam Research Corp. | 3.43 | 3.61 | 2.90 | 3.10 | 3.81 | |
| Micron Technology Inc. | 2.71 | 2.58 | 2.79 | 2.34 | 1.96 | |
| NVIDIA Corp. | 7.67 | 7.94 | 8.03 | 4.77 | 2.57 | |
| Qualcomm Inc. | 2.14 | 1.88 | 1.55 | 4.00 | 3.14 | |
| Texas Instruments Inc. | 4.28 | 4.13 | 3.27 | 3.87 | 3.29 | |
| Current Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 1.68 | 1.58 | 2.00 | 1.97 | |
| Current Ratio, Industry | ||||||
| Technology | — | 2.04 | 2.17 | 2.39 | 2.36 | |
Based on: 10-K (filing date: 2021-01-29), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,143 ÷ 2,417 = 2.54
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. | Advanced Micro Devices Inc.’s current ratio improved from 2018 to 2019 and from 2019 to 2020. |
Quick Ratio
Advanced Micro Devices Inc., quick ratio calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,595 | 1,466 | 1,078 | 1,185 | 1,264 | |
| Short-term investments | 695 | 37 | 78 | — | — | |
| Accounts receivable, net | 2,066 | 1,859 | 1,235 | 400 | 311 | |
| Receivables from related parties | 10 | 20 | 52 | 33 | 32 | |
| Total quick assets | 4,366 | 3,382 | 2,443 | 1,618 | 1,607 | |
| Current liabilities | 2,417 | 2,359 | 1,984 | 1,486 | 1,346 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.81 | 1.43 | 1.23 | 1.09 | 1.19 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 1.31 | 0.85 | 1.04 | 1.09 | 5.79 | |
| Apple Inc. | 1.22 | 1.38 | 0.99 | 1.09 | 1.22 | |
| Applied Materials Inc. | 1.95 | 1.38 | 1.62 | 2.34 | 1.66 | |
| Broadcom Inc. | 1.56 | 1.21 | 3.26 | 5.40 | 1.71 | |
| Cisco Systems Inc. | 1.58 | 1.39 | 2.11 | 2.92 | 3.05 | |
| Intel Corp. | 1.24 | 0.93 | 1.11 | 1.13 | 1.07 | |
| Lam Research Corp. | 2.78 | 2.90 | 2.26 | 2.62 | 3.34 | |
| Micron Technology Inc. | 1.82 | 1.74 | 2.13 | 1.72 | 1.34 | |
| NVIDIA Corp. | 7.04 | 6.66 | 7.26 | 4.26 | 2.36 | |
| Qualcomm Inc. | 1.75 | 1.65 | 1.33 | 3.75 | 2.85 | |
| Texas Instruments Inc. | 3.34 | 3.04 | 2.20 | 2.55 | 2.10 | |
| Quick Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 1.42 | 1.32 | 1.72 | 1.69 | |
| Quick Ratio, Industry | ||||||
| Technology | — | 1.83 | 1.96 | 2.18 | 2.14 | |
Based on: 10-K (filing date: 2021-01-29), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,366 ÷ 2,417 = 1.81
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. | Advanced Micro Devices Inc.’s quick ratio improved from 2018 to 2019 and from 2019 to 2020. |
Cash Ratio
Advanced Micro Devices Inc., cash ratio calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,595 | 1,466 | 1,078 | 1,185 | 1,264 | |
| Short-term investments | 695 | 37 | 78 | — | — | |
| Total cash assets | 2,290 | 1,503 | 1,156 | 1,185 | 1,264 | |
| Current liabilities | 2,417 | 2,359 | 1,984 | 1,486 | 1,346 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.95 | 0.64 | 0.58 | 0.80 | 0.94 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 0.77 | 0.43 | 0.58 | 0.66 | 5.18 | |
| Apple Inc. | 0.86 | 0.95 | 0.57 | 0.74 | 0.85 | |
| Applied Materials Inc. | 1.29 | 0.81 | 0.99 | 1.77 | 1.03 | |
| Broadcom Inc. | 1.20 | 0.73 | 1.84 | 4.43 | 1.01 | |
| Cisco Systems Inc. | 1.16 | 1.05 | 1.72 | 2.56 | 2.64 | |
| Intel Corp. | 0.97 | 0.59 | 0.70 | 0.80 | 0.84 | |
| Lam Research Corp. | 2.12 | 2.29 | 1.57 | 2.05 | 2.82 | |
| Micron Technology Inc. | 1.23 | 1.24 | 1.18 | 1.02 | 0.91 | |
| NVIDIA Corp. | 6.11 | 5.58 | 6.16 | 3.80 | 2.14 | |
| Qualcomm Inc. | 1.29 | 1.37 | 1.08 | 3.42 | 2.55 | |
| Texas Instruments Inc. | 2.75 | 2.54 | 1.71 | 1.98 | 1.54 | |
| Cash Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 1.00 | 0.88 | 1.34 | 1.32 | |
| Cash Ratio, Industry | ||||||
| Technology | — | 1.38 | 1.47 | 1.74 | 1.69 | |
Based on: 10-K (filing date: 2021-01-29), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,290 ÷ 2,417 = 0.95
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. | Advanced Micro Devices Inc.’s cash ratio improved from 2018 to 2019 and from 2019 to 2020. |