Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Micron Technology Inc., liquidity ratios
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Current Ratio
- The current ratio exhibited fluctuations over the observed periods. It initially increased from 2.71 to 3.1, indicating an improved liquidity position. However, it slightly declined to 2.89 before rising sharply to 4.46, suggesting a significant enhancement in short-term asset coverage. In the last two periods, the ratio decreased to 2.64 and then to 2.52, reflecting a reduction in current asset cushioning relative to current liabilities but still maintaining a level above two times current liabilities.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio but consistently remained lower, as expected. Starting at 1.82, it rose to 2.17, indicating improved liquidity in more liquid assets. It decreased to 1.92, then increased to 2.53, showing a notable boost in immediate liquidity excluding inventories. The ratio then declined more substantially to 1.59 before slightly recovering to 1.71, suggesting some easing in quick asset coverage but still maintaining a reasonable margin over one time current liabilities.
- Cash Ratio
- The cash ratio showed more pronounced volatility than the other liquidity measures. From 1.23, it increased to 1.34 and then slightly dropped to 1.24, indicating stable but modest cash liquidity. It surged to 2.01, highlighting a peak in cash and cash equivalents relative to current liabilities. However, it decreased sharply in the last two periods to 0.88 and 0.9, reflecting a notable decline in the company's immediate cash reserves compared to short-term obligations.
Current Ratio
Micron Technology Inc., current ratio calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 28,841) | 24,372) | 21,244) | 21,781) | 19,907) | 17,965) | |
| Current liabilities | 11,454) | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.52 | 2.64 | 4.46 | 2.89 | 3.10 | 2.71 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.62 | 2.51 | 2.36 | 2.02 | 2.54 | |
| Analog Devices Inc. | — | 1.84 | 1.37 | 2.02 | 1.94 | 1.84 | |
| Applied Materials Inc. | — | 2.51 | 2.60 | 2.16 | 2.54 | 3.00 | |
| Broadcom Inc. | — | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | |
| Intel Corp. | — | 1.33 | 1.54 | 1.57 | 2.10 | 1.91 | |
| KLA Corp. | 2.62 | 2.15 | 2.24 | 2.50 | 2.71 | 2.78 | |
| Lam Research Corp. | 2.21 | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | |
| NVIDIA Corp. | 4.44 | 4.17 | 3.52 | 6.65 | 4.09 | 7.67 | |
| Qualcomm Inc. | — | 2.40 | 2.33 | 1.75 | 1.68 | 2.14 | |
| Texas Instruments Inc. | — | 4.12 | 4.55 | 4.70 | 5.33 | 4.28 | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.14 | 2.45 | 2.34 | 2.47 | 2.47 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 | |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 28,841 ÷ 11,454 = 2.52
2 Click competitor name to see calculations.
- Current Assets
- Current assets showed a generally increasing trend over the observed periods, rising from $17,965 million in 2020 to $28,841 million in 2025. Notably, there was consistent year-over-year growth in current assets, with a slight decrease observed between 2022 and 2023, where the figure dipped marginally from $21,781 million to $21,244 million. After this period, current assets resumed their upward trajectory, reaching the highest level in 2025.
- Current Liabilities
- Current liabilities displayed more volatility across the periods. Beginning at $6,635 million in 2020, liabilities saw a modest reduction in 2021 followed by a notable increase in 2022 to $7,539 million. In 2023, current liabilities sharply declined to $4,765 million, representing the lowest level in the observed timeframe. However, this was followed by a substantial increase in the subsequent two years, reaching $11,454 million in 2025, which is the peak across the dataset.
- Current Ratio
- The current ratio, which measures liquidity by comparing current assets to current liabilities, exhibited fluctuations consistent with changes in the underlying balance sheet components. Starting at 2.71 in 2020, the ratio increased to 3.1 in 2021, reflecting an improvement in liquidity. It then slightly decreased to 2.89 in 2022 before surging to 4.46 in 2023, the highest point indicating strong short-term financial health. After 2023, the current ratio declined notably to 2.64 in 2024 and further to 2.52 in 2025, suggesting a relative reduction in liquidity despite increased current assets, primarily driven by a sharp rise in current liabilities.
- Overall Analysis
- The company’s current assets have steadily grown over the five-year period, signaling potential expansion or accumulation of liquid resources. However, current liabilities have shown significant volatility with a steep increase in the final two years, which has exerted downward pressure on the current ratio. The liquidity position, as measured by the current ratio, peaked in 2023 but weakened subsequently, pointing to increased short-term obligations that could impact operational flexibility. The interplay between rising current assets and even more quickly rising current liabilities in later years warrants continued monitoring to ensure liquidity remains sufficient to cover short-term debts.
Quick Ratio
Micron Technology Inc., quick ratio calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 9,642) | 7,041) | 8,577) | 8,262) | 7,763) | 7,624) | |
| Short-term investments | 665) | 1,065) | 1,017) | 1,069) | 870) | 518) | |
| Receivables | 9,265) | 6,615) | 2,443) | 5,130) | 5,311) | 3,912) | |
| Total quick assets | 19,572) | 14,721) | 12,037) | 14,461) | 13,944) | 12,054) | |
| Current liabilities | 11,454) | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.71 | 1.59 | 2.53 | 1.92 | 2.17 | 1.82 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.66 | 1.67 | 1.57 | 1.49 | 1.81 | |
| Analog Devices Inc. | — | 1.24 | 0.76 | 1.34 | 1.24 | 1.31 | |
| Applied Materials Inc. | — | 1.74 | 1.63 | 1.17 | 1.64 | 1.95 | |
| Broadcom Inc. | — | 0.82 | 2.34 | 2.18 | 2.27 | 1.56 | |
| Intel Corp. | — | 0.72 | 1.01 | 1.01 | 1.38 | 1.24 | |
| KLA Corp. | 1.65 | 1.36 | 1.33 | 1.57 | 1.81 | 1.82 | |
| Lam Research Corp. | 1.49 | 1.93 | 1.95 | 1.72 | 2.11 | 2.22 | |
| NVIDIA Corp. | 3.67 | 3.38 | 2.61 | 5.96 | 3.56 | 7.04 | |
| Qualcomm Inc. | — | 1.64 | 1.51 | 1.01 | 1.34 | 1.75 | |
| Texas Instruments Inc. | — | 2.55 | 3.12 | 3.67 | 4.45 | 3.34 | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.42 | 1.63 | 1.62 | 1.79 | 1.78 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 0.96 | 1.12 | 1.09 | 1.30 | 1.47 | |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 19,572 ÷ 11,454 = 1.71
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets displayed a fluctuating trend over the analyzed periods. Starting at 12,054 million US dollars, the figure increased moderately to 13,944 million and then to 14,461 million by 2022. Thereafter, a decline to 12,037 million was observed in 2023, followed by a substantial recovery to 14,721 million in 2024 and a strong surge reaching 19,572 million in 2025, indicating significant growth in highly liquid assets towards the end of the period.
- Current Liabilities
- Current liabilities demonstrated volatility throughout the timeframe. The values initially decreased slightly from 6,635 million in 2020 to 6,424 million in 2021, then rose to 7,539 million in 2022. A notable decline to 4,765 million occurred in 2023. However, there was a sharp increase to 9,248 million in 2024, advancing further to 11,454 million in 2025, highlighting increasing short-term obligations in the latest years.
- Quick Ratio
- The quick ratio, measuring short-term liquidity, showed variability across the periods. It started at 1.82, rose to 2.17 in 2021, then decreased to 1.92 in 2022. An improvement was seen in 2023 with a ratio of 2.53, reflecting enhanced liquidity. However, the ratio dropped to 1.59 in 2024 before slightly increasing to 1.71 in 2025. This pattern reveals fluctuating liquidity positions, with the company maintaining a consistent ability to cover current liabilities through quick assets, albeit with some periods of tightened liquid resource coverage.
Cash Ratio
Micron Technology Inc., cash ratio calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 9,642) | 7,041) | 8,577) | 8,262) | 7,763) | 7,624) | |
| Short-term investments | 665) | 1,065) | 1,017) | 1,069) | 870) | 518) | |
| Total cash assets | 10,307) | 8,106) | 9,594) | 9,331) | 8,633) | 8,142) | |
| Current liabilities | 11,454) | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.90 | 0.88 | 2.01 | 1.24 | 1.34 | 1.23 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.70 | 0.86 | 0.92 | 0.85 | 0.95 | |
| Analog Devices Inc. | — | 0.79 | 0.30 | 0.60 | 0.71 | 0.77 | |
| Applied Materials Inc. | — | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 | |
| Broadcom Inc. | — | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | |
| Intel Corp. | — | 0.62 | 0.89 | 0.88 | 1.03 | 0.97 | |
| KLA Corp. | 1.10 | 0.97 | 0.87 | 0.94 | 1.19 | 1.17 | |
| Lam Research Corp. | 0.97 | 1.35 | 1.28 | 0.77 | 1.25 | 1.55 | |
| NVIDIA Corp. | 2.39 | 2.44 | 2.03 | 4.89 | 2.95 | 6.11 | |
| Qualcomm Inc. | — | 1.27 | 1.18 | 0.54 | 1.04 | 1.29 | |
| Texas Instruments Inc. | — | 2.08 | 2.58 | 3.04 | 3.79 | 2.75 | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.00 | 1.23 | 1.15 | 1.30 | 1.32 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.57 | 0.71 | 0.67 | 0.89 | 1.06 | |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,307 ÷ 11,454 = 0.90
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets exhibit an overall increasing trend over the analyzed periods, rising from 8,142 million USD in 2020 to 10,307 million USD in 2025. There is a consistent upward movement with minor fluctuations, including a slight decline in 2024 compared to 2023 which is recovered by 2025.
- Current Liabilities Trend
- Current liabilities show more volatility, initially decreasing from 6,635 million USD in 2020 to 4,765 million USD in 2023, followed by a sharp increase reaching 11,454 million USD by 2025. The spike in the last two years indicates significant growth in short-term obligations.
- Cash Ratio Analysis
- The cash ratio, indicating liquidity by comparing cash assets to current liabilities, fluctuates noticeably. It peaks at 2.01 in 2023, reflecting strong liquidity and cash coverage of liabilities at that time. Subsequently, it declines sharply to around 0.88-0.90 in 2024 and 2025, suggesting reduced liquidity despite higher cash assets, driven by the marked increase in current liabilities.
- Overall Insights
- While cash reserves generally increase, the company's liquidity, in terms of cash to current liabilities, weakens in the latter years due to a substantial rise in short-term liabilities. This pattern suggests potential pressure on the company's ability to cover its current obligations solely with cash, highlighting an area for further financial management attention.