Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Based on: 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), 10-K (reporting date: 2019-08-29).
- Current Ratio
- The current ratio exhibited a general upward trend from 2.58 in 2019 to a peak of 4.46 in 2023, indicating an increasing ability to cover short-term obligations with current assets over this period. However, there was a significant decline to 2.64 in 2024, suggesting a decrease in liquidity compared to the prior year but still remaining slightly above the initial level in 2019.
- Quick Ratio
- The quick ratio followed a similar pattern, rising steadily from 1.74 in 2019 to a high of 2.53 in 2023, which reflects improved financial health in terms of liquid assets excluding inventories. In 2024, the ratio dropped noticeably to 1.59, indicating a reduction in liquid asset coverage relative to current liabilities and signaling a tightening liquidity position compared to previous years.
- Cash Ratio
- The cash ratio demonstrated relative stability from 2019 (1.24) through 2022 (1.24), followed by a marked increase to 2.01 in 2023, implying a significant accumulation of cash or cash equivalents. In 2024, the ratio declined sharply to 0.88, the lowest point in the six-year span, highlighting a considerable decrease in cash reserves relative to current liabilities.
Current Ratio
Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 24,372) | 21,244) | 21,781) | 19,907) | 17,965) | 16,503) | |
Current liabilities | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | 6,390) | |
Liquidity Ratio | |||||||
Current ratio1 | 2.64 | 4.46 | 2.89 | 3.10 | 2.71 | 2.58 | |
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 | 1.32 | |
Applied Materials Inc. | 2.51 | 2.60 | 2.16 | 2.54 | 3.00 | 2.30 | |
Broadcom Inc. | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 | |
Intel Corp. | 1.33 | 1.54 | 1.57 | 2.10 | 1.91 | — | |
KLA Corp. | 2.15 | 2.24 | 2.50 | 2.71 | 2.78 | 2.44 | |
Lam Research Corp. | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | 3.61 | |
NVIDIA Corp. | 4.17 | 3.52 | 6.65 | 4.09 | 7.67 | — | |
Qualcomm Inc. | 2.40 | 2.33 | 1.75 | 1.68 | 2.14 | 1.88 | |
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: 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), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,372 ÷ 9,248 = 2.64
2 Click competitor name to see calculations.
- Current Assets
- Current assets demonstrated a general upward trend over the six-year period. The value increased consistently from 16,503 million USD in August 2019 to 24,372 million USD in August 2024, indicating growth in liquid or short-term resources available to the company. A slight decline was noted from 21,781 million USD in September 2022 to 21,244 million USD in August 2023, but this was followed by a significant increase the following year.
- Current Liabilities
- Current liabilities exhibited fluctuations throughout the same period. Starting at 6,390 million USD in August 2019, liabilities increased modestly by 2020, then decreased somewhat in 2021 before rising sharply in 2022 to 7,539 million USD. A notable reduction occurred in 2023, dropping to 4,765 million USD, followed by a substantial increase, reaching 9,248 million USD in 2024. These variations suggest variability in the company’s short-term obligations over the years.
- Current Ratio
- The current ratio showed volatility corresponding to changes in current assets and liabilities. It improved from 2.58 in 2019 to a peak of 4.46 in 2023, reflecting a strong short-term liquidity position that year. However, the ratio declined significantly thereafter to 2.64 in 2024, indicating a decrease in liquidity relative to short-term liabilities, likely due to the considerable increase in current liabilities at that time. Overall, the ratio stayed above 2.5 during most years, suggesting generally robust liquidity except for the drop in the final year.
Quick Ratio
Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and equivalents | 7,041) | 8,577) | 8,262) | 7,763) | 7,624) | 7,152) | |
Short-term investments | 1,065) | 1,017) | 1,069) | 870) | 518) | 803) | |
Receivables | 6,615) | 2,443) | 5,130) | 5,311) | 3,912) | 3,195) | |
Total quick assets | 14,721) | 12,037) | 14,461) | 13,944) | 12,054) | 11,150) | |
Current liabilities | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | 6,390) | |
Liquidity Ratio | |||||||
Quick ratio1 | 1.59 | 2.53 | 1.92 | 2.17 | 1.82 | 1.74 | |
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 | 0.85 | |
Applied Materials Inc. | 1.74 | 1.63 | 1.17 | 1.64 | 1.95 | 1.38 | |
Broadcom Inc. | 0.82 | 2.34 | 2.18 | 2.27 | 1.56 | 1.21 | |
Intel Corp. | 0.72 | 1.01 | 1.01 | 1.38 | 1.24 | — | |
KLA Corp. | 1.36 | 1.33 | 1.57 | 1.81 | 1.82 | 1.54 | |
Lam Research Corp. | 1.93 | 1.95 | 1.72 | 2.11 | 2.22 | 2.16 | |
NVIDIA Corp. | 3.38 | 2.61 | 5.96 | 3.56 | 7.04 | — | |
Qualcomm Inc. | 1.64 | 1.51 | 1.01 | 1.34 | 1.75 | 1.65 | |
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 | 1.08 | 1.30 | 1.46 | — |
Based on: 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), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,721 ÷ 9,248 = 1.59
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited a generally upward trend over the analyzed period, increasing from $11,150 million in 2019 to $14,721 million in 2024. Notable increments were observed particularly between 2020 and 2021, as well as between 2023 and 2024. However, a slight decrease occurred in 2023 compared to the previous year.
- Current Liabilities
- Current liabilities demonstrated significant fluctuations throughout the years. Initially increasing from $6,390 million in 2019 to a peak of $7,539 million in 2022, the figure then sharply declined to $4,765 million in 2023 before rising substantially again to $9,248 million in 2024. These pronounced variations suggest considerable volatility in short-term obligations.
- Quick Ratio
- The quick ratio followed a variable pattern. It improved from 1.74 in 2019 to a high of 2.53 in 2023, indicating a strengthening liquidity position during that period. However, in 2024 the quick ratio decreased significantly to 1.59, the lowest level recorded over the period. This decline reflects a relative reduction in liquid assets compared to current liabilities, likely influenced by the sharp increase in current liabilities in 2024.
Cash Ratio
Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and equivalents | 7,041) | 8,577) | 8,262) | 7,763) | 7,624) | 7,152) | |
Short-term investments | 1,065) | 1,017) | 1,069) | 870) | 518) | 803) | |
Total cash assets | 8,106) | 9,594) | 9,331) | 8,633) | 8,142) | 7,955) | |
Current liabilities | 9,248) | 4,765) | 7,539) | 6,424) | 6,635) | 6,390) | |
Liquidity Ratio | |||||||
Cash ratio1 | 0.88 | 2.01 | 1.24 | 1.34 | 1.23 | 1.24 | |
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 | 0.43 | |
Applied Materials Inc. | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 | 0.81 | |
Broadcom Inc. | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 | |
Intel Corp. | 0.62 | 0.89 | 0.88 | 1.03 | 0.97 | — | |
KLA Corp. | 0.97 | 0.87 | 0.94 | 1.19 | 1.17 | 0.98 | |
Lam Research Corp. | 1.35 | 1.28 | 0.77 | 1.25 | 1.55 | 1.54 | |
NVIDIA Corp. | 2.44 | 2.03 | 4.89 | 2.95 | 6.11 | — | |
Qualcomm Inc. | 1.27 | 1.18 | 0.54 | 1.04 | 1.29 | 1.37 | |
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 | 0.66 | 0.88 | 1.06 | — |
Based on: 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), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,106 ÷ 9,248 = 0.88
2 Click competitor name to see calculations.
- Total Cash Assets
- Over the six-year period, total cash assets showed a generally increasing trend from 7,955 million USD in 2019 to a peak of 9,594 million USD in 2023, followed by a decline to 8,106 million USD in 2024. This indicates a strengthening liquidity position up to 2023, with a slight reduction in the latest year.
- Current Liabilities
- Current liabilities fluctuated significantly during the period. Starting at 6,390 million USD in 2019, the value rose moderately to 7,539 million USD in 2022, dropped sharply to 4,765 million USD in 2023, and then surged to 9,248 million USD in 2024. The most recent increase suggests a potential rise in short-term obligations or a change in working capital structure.
- Cash Ratio
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, remained relatively stable around 1.24 to 1.34 from 2019 through 2022. It sharply increased to 2.01 in 2023, reflecting higher cash assets relative to liabilities, before declining markedly to 0.88 in 2024. This decline indicates a reduction in immediate liquidity coverage, largely influenced by the simultaneous rise in current liabilities and decrease in cash assets in 2024.