Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Lam Research Corp., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29).
The analysis of the liquidity ratios over the given periods reveals notable trends in the company's short-term financial health.
- Current Ratio
-
The current ratio starts at a high level of 3.59 in September 2019, indicating strong short-term liquidity. It fluctuates moderately around the 3.0 mark through 2020 and 2021, peaking slightly above 3.3 in some quarters. However, from early 2022 onwards, there is a gradual downward trend observed, with the ratio declining steadily from 2.83 in Q1 2022 to 2.21 by mid-2025. This suggests a reduction in the company's ability to cover its current liabilities with current assets over this later period, though the ratio remains above 2.0, which still generally indicates a comfortable liquidity position.
- Quick Ratio
-
The quick ratio shows a somewhat similar pattern to the current ratio but at lower levels, reflecting the exclusion of inventory from liquid assets. Starting at 2.54 in late 2019, the ratio demonstrates volatility with a low of 1.68 in mid-2025 and intermittent rises above 2.0 during the earlier periods. The ratio decreases somewhat consistently from 2.2 in late 2021 to below 1.5 by the end of 2024, signaling a more conservative liquidity base without relying on inventory. This trend may indicate a tightening of readily available assets relative to current liabilities.
- Cash Ratio
-
The cash ratio starts relatively strong at 1.87 in September 2019 but exhibits a declining trend overall. It drops to approximately 1.0 by early 2022 and falls further to below 1.0 thereafter, reaching 0.97 by mid-2025. This points to a gradual decrease in the company's most liquid assets (cash and cash equivalents) relative to current liabilities. Such a decline suggests a more constrained cash position over time, which could imply changes in cash management strategy or increased current liabilities.
Overall, while the company maintains liquidity ratios above 1.0 across all metrics throughout the periods analyzed, indicating it remains capable of meeting short-term obligations, the declining trend in each ratio – especially from 2022 onwards – suggests a gradual reduction in liquidity buffers. The decreasing cash and quick ratios reflect a shift away from holding large amounts of highly liquid assets and may warrant monitoring to ensure that liquidity remains sufficient to support operational needs and financial stability.
Current Ratio
Lam Research Corp., current ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Current assets | 14,516,995) | 13,460,322) | 13,612,847) | 13,492,368) | 12,883,220) | 12,488,436) | 13,054,612) | 12,993,562) | 13,228,412) | 13,730,027) | 13,708,788) | 13,612,664) | 12,285,235) | 11,888,101) | 12,102,862) | 11,144,682) | 11,652,387) | 11,322,270) | 11,467,952) | 11,274,883) | 10,853,535) | 9,408,785) | 8,454,965) | 8,834,615) | |||||||
| Current liabilities | 6,568,425) | 5,489,845) | 5,350,296) | 5,342,668) | 4,338,438) | 4,430,089) | 4,272,383) | 4,247,177) | 4,184,918) | 4,441,329) | 4,546,922) | 5,053,382) | 4,564,759) | 4,194,741) | 3,863,151) | 3,409,220) | 3,527,867) | 3,612,333) | 3,591,053) | 3,406,868) | 3,162,442) | 2,105,661) | 2,565,501) | 2,457,682) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Current ratio1 | 2.21 | 2.45 | 2.54 | 2.53 | 2.97 | 2.82 | 3.06 | 3.06 | 3.16 | 3.09 | 3.01 | 2.69 | 2.69 | 2.83 | 3.13 | 3.27 | 3.30 | 3.13 | 3.19 | 3.31 | 3.43 | 4.47 | 3.30 | 3.59 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 2.49 | 2.80 | 2.62 | 2.50 | 2.82 | 2.64 | 2.51 | 2.19 | 2.18 | 2.38 | 2.36 | 2.16 | 2.44 | 2.40 | 2.02 | 2.24 | 2.70 | 2.51 | 2.54 | 2.28 | 2.10 | 2.21 | |||||||
| Analog Devices Inc. | — | 2.32 | 2.08 | 1.93 | 1.84 | 1.69 | 1.58 | 1.51 | 1.37 | 1.71 | 1.79 | 2.12 | 2.02 | 1.92 | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | 1.84 | 1.47 | 1.30 | 1.08 | |||||||
| Applied Materials Inc. | — | 2.50 | 2.46 | 2.68 | 2.51 | 2.86 | 2.80 | 2.71 | 2.60 | 2.30 | 2.26 | 2.31 | 2.16 | 2.26 | 2.29 | 2.51 | 2.54 | 2.98 | 3.10 | 3.17 | 3.00 | 2.86 | 2.67 | 2.36 | |||||||
| Broadcom Inc. | — | — | 1.08 | 1.00 | 1.17 | 1.04 | 1.25 | 1.33 | 2.82 | 2.50 | 2.38 | 2.52 | 2.62 | 2.32 | 2.14 | 2.44 | 2.64 | 2.41 | 2.21 | 2.14 | 1.87 | 2.04 | 2.15 | 1.56 | |||||||
| Intel Corp. | — | — | 1.24 | 1.31 | 1.33 | 1.31 | 1.59 | 1.57 | 1.54 | 1.53 | 1.60 | 1.76 | 1.57 | 1.77 | 1.86 | 2.13 | 2.10 | 2.07 | 1.99 | 1.90 | 1.91 | 1.66 | 1.97 | 1.74 | |||||||
| KLA Corp. | 2.62 | 2.54 | 2.36 | 2.13 | 2.15 | 2.14 | 1.91 | 2.21 | 2.24 | 2.35 | 2.34 | 2.43 | 2.50 | 2.33 | 2.41 | 2.44 | 2.71 | 2.66 | 2.59 | 2.72 | 2.78 | 2.61 | 2.55 | 2.24 | |||||||
| Micron Technology Inc. | — | 2.75 | 3.13 | 2.72 | 2.64 | 3.41 | 3.74 | 3.53 | 4.46 | 4.26 | 4.17 | 3.51 | 2.89 | 3.24 | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | 2.71 | 2.89 | 2.74 | 2.56 | |||||||
| NVIDIA Corp. | 4.44 | 4.10 | 4.27 | 3.53 | 4.17 | 3.59 | 2.79 | 3.43 | 3.52 | 3.39 | 3.62 | 5.32 | 6.65 | 7.14 | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | 7.67 | 8.42 | 8.65 | 8.98 | |||||||
| Qualcomm Inc. | — | 3.19 | 2.73 | 2.62 | 2.40 | 2.39 | 2.65 | 2.56 | 2.33 | 2.42 | 2.42 | 2.09 | 1.75 | 1.61 | 1.61 | 1.65 | 1.68 | 1.72 | 2.02 | 2.15 | 2.14 | 1.97 | 1.57 | 1.76 | |||||||
| Texas Instruments Inc. | — | — | 5.81 | 5.26 | 4.12 | 4.31 | 4.62 | 4.91 | 4.55 | 5.69 | 5.72 | 5.17 | 4.70 | 4.92 | 5.09 | 5.54 | 5.33 | 5.63 | 5.08 | 6.12 | 4.28 | 4.24 | 3.92 | 3.49 | |||||||
Based on: 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,516,995 ÷ 6,568,425 = 2.21
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and working capital management over the observed periods.
- Current Assets
- The current assets show an overall increasing trend from approximately $8.8 billion in September 2019, reaching heights above $14.5 billion by June 2025. While some fluctuations are present, the steady upward movement indicates growth in liquid and short-term resources over time.
- Current Liabilities
- Current liabilities also exhibit an increasing pattern, starting from about $2.46 billion in September 2019 and rising to over $6.5 billion by June 2025. This increase indicates that short-term obligations have grown significantly, roughly more than doubling in the observed timeframe.
- Current Ratio
- The current ratio, a key liquidity indicator, begins at a high of 3.59 in September 2019 and sees a decline with fluctuations thereafter. There are periods where it temporarily rebounds to around 3.3, but the overall trajectory is downward, ending at 2.21 in June 2025. A ratio above 2 throughout most of the periods suggests maintained good liquidity, but the declining trend points to a relatively faster increase in current liabilities compared to current assets.
In summary, while the company has increased both its current assets and liabilities over the analyzed periods, the growth rate of current liabilities has outpaced that of current assets to some extent, causing a decline in the current ratio. Despite this, the current ratio remains above 2, indicating continued solid short-term financial health, though the downward trend warrants monitoring to ensure sufficient liquidity is maintained.
Quick Ratio
Lam Research Corp., quick ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 6,390,659) | 5,450,718) | 5,665,379) | 6,067,471) | 5,847,856) | 5,672,232) | 5,623,289) | 5,126,150) | 5,337,056) | 5,305,648) | 4,484,716) | 4,256,499) | 3,522,001) | 4,194,719) | 5,086,544) | 4,042,151) | 4,418,263) | 3,673,366) | 3,687,165) | 4,129,067) | 4,915,172) | 3,961,586) | 3,035,887) | 4,607,182) | |||||||
| Accounts receivable, less allowance | 3,378,071) | 3,228,182) | 3,304,946) | 2,937,217) | 2,519,250) | 2,203,707) | 2,707,458) | 2,810,953) | 2,823,376) | 3,262,140) | 4,070,088) | 4,569,735) | 4,313,818) | 3,702,320) | 3,402,840) | 3,397,180) | 3,026,430) | 2,809,068) | 2,900,362) | 2,317,922) | 2,097,099) | 2,191,070) | 2,030,490) | 1,635,643) | |||||||
| Total quick assets | 9,768,730) | 8,678,900) | 8,970,325) | 9,004,688) | 8,367,106) | 7,875,939) | 8,330,747) | 7,937,103) | 8,160,432) | 8,567,788) | 8,554,804) | 8,826,234) | 7,835,819) | 7,897,039) | 8,489,384) | 7,439,331) | 7,444,693) | 6,482,434) | 6,587,527) | 6,446,989) | 7,012,271) | 6,152,656) | 5,066,377) | 6,242,825) | |||||||
| Current liabilities | 6,568,425) | 5,489,845) | 5,350,296) | 5,342,668) | 4,338,438) | 4,430,089) | 4,272,383) | 4,247,177) | 4,184,918) | 4,441,329) | 4,546,922) | 5,053,382) | 4,564,759) | 4,194,741) | 3,863,151) | 3,409,220) | 3,527,867) | 3,612,333) | 3,591,053) | 3,406,868) | 3,162,442) | 2,105,661) | 2,565,501) | 2,457,682) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Quick ratio1 | 1.49 | 1.58 | 1.68 | 1.69 | 1.93 | 1.78 | 1.95 | 1.87 | 1.95 | 1.93 | 1.88 | 1.75 | 1.72 | 1.88 | 2.20 | 2.18 | 2.11 | 1.79 | 1.83 | 1.89 | 2.22 | 2.92 | 1.97 | 2.54 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 1.12 | 1.66 | 1.56 | 1.57 | 1.79 | 1.71 | 1.67 | 1.42 | 1.40 | 1.52 | 1.57 | 1.48 | 1.82 | 1.83 | 1.49 | 1.64 | 2.01 | 1.85 | 1.80 | 1.62 | 1.46 | 1.55 | |||||||
| Analog Devices Inc. | — | 1.69 | 1.40 | 1.32 | 1.24 | 1.14 | 1.02 | 0.86 | 0.76 | 0.98 | 1.06 | 1.36 | 1.34 | 1.34 | 1.44 | 1.54 | 1.24 | 0.82 | 0.76 | 1.12 | 1.31 | 1.05 | 0.87 | 0.70 | |||||||
| Applied Materials Inc. | — | 1.62 | 1.62 | 1.84 | 1.74 | 1.95 | 1.79 | 1.72 | 1.63 | 1.43 | 1.35 | 1.30 | 1.17 | 1.24 | 1.32 | 1.62 | 1.64 | 2.02 | 2.10 | 2.15 | 1.95 | 1.76 | 1.75 | 1.45 | |||||||
| Broadcom Inc. | — | — | 0.73 | 0.68 | 0.82 | 0.76 | 0.76 | 0.83 | 2.34 | 2.04 | 1.94 | 2.12 | 2.18 | 1.89 | 1.75 | 2.03 | 2.27 | 2.05 | 1.86 | 1.80 | 1.56 | 1.72 | 1.88 | 1.30 | |||||||
| Intel Corp. | — | — | 0.67 | 0.75 | 0.72 | 0.77 | 1.01 | 0.91 | 1.01 | 0.97 | 1.00 | 1.15 | 1.01 | 1.08 | 1.22 | 1.56 | 1.38 | 1.46 | 1.30 | 1.23 | 1.24 | 1.15 | 1.48 | 1.22 | |||||||
| KLA Corp. | 1.65 | 1.58 | 1.48 | 1.37 | 1.36 | 1.33 | 1.13 | 1.30 | 1.33 | 1.41 | 1.48 | 1.53 | 1.57 | 1.48 | 1.63 | 1.62 | 1.81 | 1.80 | 1.74 | 1.76 | 1.82 | 1.67 | 1.67 | 1.45 | |||||||
| Micron Technology Inc. | — | 1.80 | 1.87 | 1.67 | 1.59 | 1.98 | 2.13 | 2.01 | 2.53 | 2.50 | 2.49 | 2.13 | 1.92 | 2.35 | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | 1.82 | 1.98 | 1.81 | 1.74 | |||||||
| NVIDIA Corp. | 3.67 | 3.41 | 3.50 | 2.88 | 3.38 | 2.92 | 2.23 | 2.67 | 2.61 | 2.63 | 2.95 | 4.63 | 5.96 | 6.44 | 5.22 | 3.92 | 3.56 | 3.46 | 5.42 | 9.60 | 7.04 | 7.61 | 7.62 | 7.64 | |||||||
| Qualcomm Inc. | — | 2.02 | 1.84 | 1.79 | 1.64 | 1.64 | 1.85 | 1.70 | 1.51 | 1.47 | 1.32 | 1.21 | 1.01 | 0.90 | 1.16 | 1.25 | 1.34 | 1.38 | 1.64 | 1.78 | 1.75 | 1.57 | 1.33 | 1.54 | |||||||
| Texas Instruments Inc. | — | — | 2.93 | 2.76 | 2.55 | 2.88 | 3.13 | 3.40 | 3.12 | 4.12 | 4.24 | 3.93 | 3.67 | 3.98 | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | 3.34 | 3.16 | 2.84 | 2.54 | |||||||
Based on: 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,768,730 ÷ 6,568,425 = 1.49
2 Click competitor name to see calculations.
The quick assets and current liabilities of the company exhibit varying trends across the reported quarters. Total quick assets show fluctuations with some notable increases and decreases. Initially, total quick assets declined from 6,242,825 thousand US dollars at the end of September 2019 to 5,066,377 thousand US dollars by the end of December 2019. Subsequently, there are periods of growth interspersed with declines, for instance, a peak near 8,489,384 thousand US dollars in December 2021 followed by some reductions and variability in the subsequent quarters. The later quarters show an upward movement, reaching 9,768,730 thousand US dollars by June 2025.
Current liabilities also show a general upward trajectory with some fluctuations. Starting from 2,457,682 thousand US dollars in September 2019, current liabilities increased steadily with occasional fluctuations, reaching a high of 6,568,425 thousand US dollars by June 2025. This indicates a growing short-term obligation over the period.
The quick ratio, representing the company's ability to cover current liabilities with quick assets, displays a declining trend over the analyzed quarters. It starts relatively high at 2.54 in September 2019 and decreases gradually on average to 1.49 by June 2025, despite some cyclical increases. The ratio remains above 1 throughout, indicating the company maintains more quick assets than current liabilities; however, the declining pattern implies a reduction in short-term liquidity strength over time.
- Total Quick Assets
- Display volatility with alternating increases and declines; notable peak in December 2021 and upward trend reaching a maximum in mid-2025.
- Current Liabilities
- Generally increases consistently over the entire period, implying growing short-term obligations.
- Quick Ratio
- Declines from a strong liquidity position (2.54) to a lower position (1.49) by the end of the period, though remaining above 1, suggesting decreasing but adequate liquidity coverage of current liabilities.
Cash Ratio
Lam Research Corp., cash ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 6,390,659) | 5,450,718) | 5,665,379) | 6,067,471) | 5,847,856) | 5,672,232) | 5,623,289) | 5,126,150) | 5,337,056) | 5,305,648) | 4,484,716) | 4,256,499) | 3,522,001) | 4,194,719) | 5,086,544) | 4,042,151) | 4,418,263) | 3,673,366) | 3,687,165) | 4,129,067) | 4,915,172) | 3,961,586) | 3,035,887) | 4,607,182) | |||||||
| Total cash assets | 6,390,659) | 5,450,718) | 5,665,379) | 6,067,471) | 5,847,856) | 5,672,232) | 5,623,289) | 5,126,150) | 5,337,056) | 5,305,648) | 4,484,716) | 4,256,499) | 3,522,001) | 4,194,719) | 5,086,544) | 4,042,151) | 4,418,263) | 3,673,366) | 3,687,165) | 4,129,067) | 4,915,172) | 3,961,586) | 3,035,887) | 4,607,182) | |||||||
| Current liabilities | 6,568,425) | 5,489,845) | 5,350,296) | 5,342,668) | 4,338,438) | 4,430,089) | 4,272,383) | 4,247,177) | 4,184,918) | 4,441,329) | 4,546,922) | 5,053,382) | 4,564,759) | 4,194,741) | 3,863,151) | 3,409,220) | 3,527,867) | 3,612,333) | 3,591,053) | 3,406,868) | 3,162,442) | 2,105,661) | 2,565,501) | 2,457,682) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Cash ratio1 | 0.97 | 0.99 | 1.06 | 1.14 | 1.35 | 1.28 | 1.32 | 1.21 | 1.28 | 1.19 | 0.99 | 0.84 | 0.77 | 1.00 | 1.32 | 1.19 | 1.25 | 1.02 | 1.03 | 1.21 | 1.55 | 1.88 | 1.18 | 1.87 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 0.60 | 0.95 | 0.70 | 0.61 | 0.86 | 0.93 | 0.86 | 0.76 | 0.83 | 0.90 | 0.92 | 0.84 | 1.08 | 1.17 | 0.85 | 1.01 | 1.31 | 1.09 | 0.95 | 0.73 | 0.73 | 0.70 | |||||||
| Analog Devices Inc. | — | 1.16 | 0.88 | 0.92 | 0.79 | 0.79 | 0.72 | 0.45 | 0.30 | 0.41 | 0.44 | 0.69 | 0.60 | 0.62 | 0.75 | 0.81 | 0.71 | 0.53 | 0.47 | 0.63 | 0.77 | 0.65 | 0.50 | 0.37 | |||||||
| Applied Materials Inc. | — | 0.89 | 0.84 | 1.06 | 1.12 | 1.26 | 1.10 | 1.06 | 0.93 | 0.79 | 0.65 | 0.56 | 0.35 | 0.52 | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | 1.29 | 1.11 | 1.20 | 0.87 | |||||||
| Broadcom Inc. | — | — | 0.46 | 0.45 | 0.56 | 0.52 | 0.49 | 0.58 | 1.92 | 1.64 | 1.54 | 1.69 | 1.76 | 1.49 | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | 1.20 | 1.32 | 1.39 | 0.83 | |||||||
| Intel Corp. | — | — | 0.61 | 0.65 | 0.62 | 0.69 | 0.91 | 0.78 | 0.89 | 0.87 | 0.89 | 1.01 | 0.88 | 0.81 | 0.99 | 1.32 | 1.03 | 1.17 | 1.00 | 0.93 | 0.97 | 0.83 | 1.15 | 0.87 | |||||||
| KLA Corp. | 1.10 | 1.03 | 0.91 | 0.96 | 0.97 | 0.96 | 0.73 | 0.88 | 0.87 | 0.85 | 0.82 | 0.94 | 0.94 | 0.91 | 1.01 | 1.04 | 1.19 | 1.20 | 1.14 | 1.17 | 1.17 | 0.99 | 0.98 | 0.90 | |||||||
| Micron Technology Inc. | — | 1.07 | 1.04 | 0.84 | 0.88 | 1.23 | 1.44 | 1.52 | 2.01 | 2.03 | 2.06 | 1.62 | 1.24 | 1.46 | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | 1.23 | 1.40 | 1.28 | 1.20 | |||||||
| NVIDIA Corp. | 2.39 | 2.34 | 2.49 | 2.07 | 2.44 | 2.01 | 1.55 | 2.11 | 2.03 | 1.92 | 2.25 | 3.66 | 4.89 | 5.34 | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | 6.11 | 6.62 | 6.44 | 6.60 | |||||||
| Qualcomm Inc. | — | 1.58 | 1.45 | 1.44 | 1.27 | 1.34 | 1.51 | 1.31 | 1.18 | 1.02 | 0.85 | 0.82 | 0.54 | 0.58 | 0.86 | 0.92 | 1.04 | 1.13 | 1.27 | 1.33 | 1.29 | 1.34 | 1.02 | 1.24 | |||||||
| Texas Instruments Inc. | — | — | 2.15 | 2.01 | 2.08 | 2.37 | 2.66 | 2.93 | 2.58 | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | 2.75 | 2.53 | 2.29 | 1.99 | |||||||
Based on: 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,390,659 ÷ 6,568,425 = 0.97
2 Click competitor name to see calculations.
The liquidity position of the company, as measured by total cash assets and current liabilities, exhibits notable fluctuations over the observed periods. Total cash assets decreased from approximately $4.6 billion in late September 2019 to around $3.0 billion by late December 2019, subsequently increasing to about $5.9 billion by September 2024. This represents a recovery and growth trend in cash holdings after an initial decline. However, this upward trend shows some variability with intermittent decreases, such as those occurring in mid-2022 and from late 2024 to early 2025.
Current liabilities also underwent significant changes, starting at approximately $2.46 billion in September 2019 and rising steadily to approximately $6.57 billion by June 2025. This steady increase in current liabilities suggests growing short-term obligations over the period. The rate of increase in liabilities appears consistent, with occasional accelerations in certain quarters, indicating potential periodic increases in operational or financial liabilities.
The cash ratio, representing the ability to cover current liabilities with cash assets, shows a general declining trend over the entire period. Beginning at a strong ratio of 1.87 in September 2019, it dropped sharply to 1.18 by December 2019 and continued to fluctuate around the 1.0 mark thereafter. The ratio dipped below 1.0 during mid-2022, indicating that cash assets were insufficient to fully cover current liabilities at those points. Subsequently, the ratio recovered temporarily above 1.0 but generally hovered close to this threshold, reflecting a tightening liquidity position.
This fluctuating cash ratio, coupled with the increasing current liabilities and relatively volatile cash assets, suggests that while the company maintains sizeable cash reserves, these reserves have not consistently outpaced the growth in short-term obligations. The liquidity condition requires ongoing monitoring to ensure that cash reserves remain adequate to meet near-term liabilities, especially given the observed downward pressure on the cash ratio in recent quarters.
- Total Cash Assets
- Displayed an initial sharp decrease followed by a general upward trend with periodic fluctuations.
- Current Liabilities
- Showed a steady increase throughout the period, indicating growing short-term financial obligations.
- Cash Ratio
- Exhibited a declining trend, moving from a strong liquidity position to maintenance near or below the critical value of 1.0, signaling tighter liquidity.