Advanced Micro Devices Inc. (NASDAQ:AMD)

The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the ratios demonstrate a degree of cyclicality, with periods of improvement followed by periods of decline. A notable trend emerges towards the end of the period, suggesting a potential strengthening of the short-term liquidity profile.

Current Ratio

The current ratio generally remained above 2.0 throughout the period, indicating a comfortable ability to cover short-term liabilities with short-term assets. A slight decline was observed from March 2022 through September 2022, followed by a recovery and peaking at 2.82 in June 2024. Subsequent quarters saw a slight decrease before rising again to 2.85 in December 2025, suggesting improved short-term solvency at the end of the analyzed timeframe.

Quick Ratio

The quick ratio, which excludes inventory from current assets, presents a more conservative view of liquidity. This ratio experienced a more pronounced decline from March 2022 to September 2022, falling to 1.48. It recovered modestly through December 2022, but then decreased again, reaching a low of 1.12 in March 2024. A significant increase is then observed, culminating in a value of 1.78 in December 2025, indicating an improved ability to meet short-term obligations with highly liquid assets.

Cash Ratio

The cash ratio, the most conservative measure, consistently remained below the quick ratio, as expected. It demonstrated a steady decline from 1.17 in March 2022 to a low of 0.61 in September 2024. A subsequent recovery is evident, with the ratio increasing to 1.12 in December 2025, suggesting a strengthening of the company’s immediate ability to cover current liabilities with cash and cash equivalents.

Overall, the observed trends suggest a period of moderate liquidity challenges in late 2022 and early to mid-2024, followed by a strengthening of the liquidity position in the latter part of the analyzed period. The increasing trend in all three ratios towards the end of the timeframe indicates improved short-term financial health.

The current ratio exhibited fluctuations over the analyzed period, generally indicating a healthy, though varying, short-term liquidity position. An initial increase is observed, followed by periods of decline and subsequent recovery. The ratio consistently remained above 2.0, suggesting the company possesses more current assets than current liabilities throughout the timeframe.

Initial Trend (Mar 26, 2022 – Sep 24, 2022)

The current ratio began at 2.40 and experienced a slight increase to 2.44 before declining to 2.16. This initial decrease suggests a potential relative increase in short-term obligations or a decrease in readily available current assets during this period. However, the ratio remained within an acceptable range.

Recovery and Peak (Dec 31, 2022 – Jun 29, 2024)

Following the decline, the current ratio demonstrated a recovery, peaking at 2.82 in June 2024. This improvement indicates a strengthening of the company’s short-term liquidity, potentially driven by increased current assets or reduced current liabilities. The ratio consistently exceeded 2.38 during this phase.

Subsequent Fluctuations (Sep 28, 2024 – Dec 27, 2025)

After reaching its peak, the current ratio experienced a decrease to 2.31 in September 2025, before rebounding to 2.85 by December 2025. This final fluctuation suggests ongoing dynamic changes in the company’s working capital management. The ratio’s final value indicates a strong liquidity position at the end of the analyzed period.

Overall Observations

The observed variations in the current ratio likely reflect the company’s operational cycles, investment activities, and financing decisions. While fluctuations are present, the ratio consistently remaining above 2.0 suggests a generally comfortable margin of safety in meeting short-term obligations. The peak in June 2024 represents the strongest liquidity position within the observed timeframe.

The quick ratio exhibited fluctuations over the observed period, generally indicating a healthy, though evolving, short-term liquidity position. Initial values demonstrate a strong ability to meet immediate obligations with readily convertible assets. However, subsequent periods reveal a degree of variability, with periods of decline followed by recovery.

Overall Trend

The quick ratio began at 1.83 and generally decreased through the first half of 2023, reaching a low of 1.40. A subsequent recovery was observed, peaking at 1.79 in June 2024. The ratio experienced another decline to 1.56 by December 2024, followed by a significant increase to 1.78 in March 2025, and a further increase to 1.66 in June 2025. The latest reported value for September 2025 is 1.15, and December 2025 is 1.78.

Initial Period (March 2022 – December 2022)

From March 2022 to December 2022, the quick ratio remained relatively stable, fluctuating between 1.48 and 1.83. This suggests a consistent ability to cover short-term liabilities with quick assets during this timeframe. A slight dip was observed in September 2022, but the ratio recovered by the end of the year.

Declining Phase (January 2023 – June 2023)

The period from April 2023 to July 2023 saw a consistent decline in the quick ratio, from 1.52 to 1.40. This decrease coincided with an increase in current liabilities, suggesting a potential strain on short-term liquidity. While still above 1.0, the downward trend warranted monitoring.

Recovery and Subsequent Volatility (July 2023 – December 2024)

Following the low in July 2023, the quick ratio experienced a recovery, reaching 1.67 by December 2023. This improvement was likely driven by an increase in quick assets relative to current liabilities. However, the ratio then fluctuated between 1.56 and 1.79 through June 2024, indicating some instability.

Recent Performance (March 2025 – December 2025)

The quick ratio increased to 1.66 in March 2025, then decreased to 1.12 in June 2025. A significant increase to 1.78 was observed in December 2025. This recent volatility suggests a dynamic relationship between quick assets and current liabilities, requiring further investigation to understand the underlying drivers.

Overall, the quick ratio indicates a generally adequate short-term liquidity position, although recent fluctuations suggest a need for continued monitoring of the relationship between quick assets and current liabilities.

The cash ratio exhibited fluctuations over the observed period, generally trending downwards from early 2022 before a recent increase. Initial values indicated a relatively strong immediate liquidity position, which diminished through 2022 and into the first half of 2023. A subsequent recovery was observed in late 2023 and continued into the first half of 2025, culminating in the highest ratio recorded within the analyzed timeframe.

Overall Trend

From March 2022 to June 2023, the cash ratio generally decreased, falling from 1.17 to a low of 0.83. This suggests a weakening in the company’s ability to cover its current liabilities with only cash and cash equivalents. A period of relative stability followed, with the ratio fluctuating between 0.70 and 0.95 from September 2023 to March 2024. A notable upward trend commenced in April 2024, accelerating through December 2025, reaching a ratio of 1.12.

Short-Term Fluctuations

A slight decrease was observed from March 2022 (1.17) to June 2022 (1.08). A more pronounced decline occurred between June 2022 (1.08) and September 2022 (0.84), indicating a faster rate of decline in immediate liquidity during that quarter. A modest recovery to 0.92 was seen by December 2022, but this was short-lived as the ratio continued to fall in the first half of 2023. The most significant single-quarter increase occurred between September 2024 (0.61) and December 2024 (0.70), though this remained below the earlier levels. The largest increase occurred between September 2025 (0.62) and December 2025 (1.12).

Recent Performance

The most recent quarters demonstrate a strengthening cash position relative to current liabilities. The cash ratio increased from 0.62 in September 2025 to 1.12 in December 2025. This suggests improved short-term solvency and a greater capacity to meet immediate obligations without relying on other liquid assets or credit. This recent improvement represents a significant shift from the downward trend observed earlier in the period.

The observed fluctuations in the cash ratio warrant further investigation into the underlying drivers of both the decreases and the recent increases. Changes in cash management practices, working capital requirements, and the timing of liability payments could all contribute to these trends.