Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Advanced Micro Devices Inc., liquidity ratios
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.02 | 2.54 | 1.95 | 1.78 | 1.76 | |
| Quick ratio | 1.49 | 1.81 | 1.43 | 1.23 | 1.09 | |
| Cash ratio | 0.85 | 0.95 | 0.64 | 0.58 | 0.80 |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Advanced Micro Devices Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Advanced Micro Devices Inc. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Advanced Micro Devices Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Current Ratio
Advanced Micro Devices Inc., current ratio calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 8,583 | 6,143 | 4,597 | 3,540 | 2,622 | |
| Current liabilities | 4,240 | 2,417 | 2,359 | 1,984 | 1,486 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.02 | 2.54 | 1.95 | 1.78 | 1.76 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 1.94 | 1.84 | 1.32 | 1.50 | 1.47 | |
| Applied Materials Inc. | 2.54 | 3.00 | 2.30 | 2.64 | 3.14 | |
| Broadcom Inc. | 2.64 | 1.87 | 1.44 | 3.90 | 6.26 | |
| First Solar Inc. | 4.39 | 3.56 | 2.73 | 4.57 | 5.89 | |
| Intel Corp. | 2.10 | 1.91 | 1.40 | 1.73 | 1.69 | |
| KLA Corp. | 2.71 | 2.78 | 2.44 | 3.73 | 3.40 | |
| Lam Research Corp. | 3.30 | 3.43 | 3.61 | 2.90 | 3.10 | |
| Micron Technology Inc. | 3.10 | 2.71 | 2.58 | 2.79 | 2.34 | |
| NVIDIA Corp. | 4.09 | 7.67 | 7.94 | 8.03 | 4.77 | |
| NXP Semiconductors N.V. | 2.13 | 2.14 | 1.82 | 1.54 | 2.22 | |
| ON Semiconductor Corp. | 2.45 | 1.90 | 1.66 | 2.16 | 2.08 | |
| Qualcomm Inc. | 1.68 | 2.14 | 1.88 | 1.55 | 4.00 | |
| Texas Instruments Inc. | 5.33 | 4.28 | 4.13 | 3.27 | 3.87 | |
| Current Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 2.47 | 2.46 | 2.04 | 2.29 | 2.89 | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.61 | 1.80 | 1.73 | 1.82 | 2.00 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,583 ÷ 4,240 = 2.02
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. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Quick Ratio
Advanced Micro Devices Inc., quick ratio calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,535 | 1,595 | 1,466 | 1,078 | 1,185 | |
| Short-term investments | 1,073 | 695 | 37 | 78 | — | |
| Accounts receivable, net | 2,706 | 2,066 | 1,859 | 1,235 | 400 | |
| Receivables from related parties | 2 | 10 | 20 | 52 | 33 | |
| Total quick assets | 6,316 | 4,366 | 3,382 | 2,443 | 1,618 | |
| Current liabilities | 4,240 | 2,417 | 2,359 | 1,984 | 1,486 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.49 | 1.81 | 1.43 | 1.23 | 1.09 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 1.24 | 1.31 | 0.85 | 1.04 | 1.09 | |
| Applied Materials Inc. | 1.64 | 1.95 | 1.38 | 1.62 | 2.34 | |
| Broadcom Inc. | 2.27 | 1.56 | 1.21 | 3.26 | 5.40 | |
| First Solar Inc. | 3.14 | 2.41 | 2.14 | 3.71 | 5.22 | |
| Intel Corp. | 1.38 | 1.24 | 0.93 | 1.11 | 1.13 | |
| KLA Corp. | 1.81 | 1.82 | 1.54 | 2.90 | 2.77 | |
| Lam Research Corp. | 2.48 | 2.78 | 2.90 | 2.26 | 2.62 | |
| Micron Technology Inc. | 2.17 | 1.82 | 1.74 | 2.13 | 1.72 | |
| NVIDIA Corp. | 3.56 | 7.04 | 6.66 | 7.26 | 4.26 | |
| NXP Semiconductors N.V. | 1.53 | 1.51 | 0.96 | 1.06 | 1.63 | |
| ON Semiconductor Corp. | 1.40 | 1.05 | 0.88 | 1.19 | 1.17 | |
| Qualcomm Inc. | 1.34 | 1.75 | 1.65 | 1.33 | 3.75 | |
| Texas Instruments Inc. | 4.45 | 3.34 | 3.04 | 2.20 | 2.55 | |
| Quick Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.80 | 1.79 | 1.48 | 1.69 | 2.31 | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.37 | 1.57 | 1.52 | 1.62 | 1.80 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,316 ÷ 4,240 = 1.49
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. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Cash Ratio
Advanced Micro Devices Inc., cash ratio calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,535 | 1,595 | 1,466 | 1,078 | 1,185 | |
| Short-term investments | 1,073 | 695 | 37 | 78 | — | |
| Total cash assets | 3,608 | 2,290 | 1,503 | 1,156 | 1,185 | |
| Current liabilities | 4,240 | 2,417 | 2,359 | 1,984 | 1,486 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.85 | 0.95 | 0.64 | 0.58 | 0.80 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Analog Devices Inc. | 0.71 | 0.77 | 0.43 | 0.58 | 0.66 | |
| Applied Materials Inc. | 0.86 | 1.29 | 0.81 | 0.99 | 1.77 | |
| Broadcom Inc. | 1.94 | 1.20 | 0.73 | 1.84 | 4.43 | |
| First Solar Inc. | 2.51 | 2.06 | 1.64 | 3.01 | 4.60 | |
| Intel Corp. | 1.03 | 0.97 | 0.59 | 0.70 | 0.80 | |
| KLA Corp. | 1.19 | 1.17 | 0.98 | 2.36 | 2.33 | |
| Lam Research Corp. | 1.62 | 2.12 | 2.29 | 1.57 | 2.05 | |
| Micron Technology Inc. | 1.34 | 1.23 | 1.24 | 1.18 | 1.02 | |
| NVIDIA Corp. | 2.95 | 6.11 | 5.58 | 6.16 | 3.80 | |
| NXP Semiconductors N.V. | 1.15 | 1.13 | 0.58 | 0.82 | 1.31 | |
| ON Semiconductor Corp. | 0.88 | 0.65 | 0.49 | 0.73 | 0.67 | |
| Qualcomm Inc. | 1.04 | 1.29 | 1.37 | 1.08 | 3.42 | |
| Texas Instruments Inc. | 3.79 | 2.75 | 2.54 | 1.71 | 1.98 | |
| Cash Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.31 | 1.34 | 1.04 | 1.16 | 1.86 | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.98 | 1.20 | 1.11 | 1.17 | 1.39 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,608 ÷ 4,240 = 0.85
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. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |