Micron Technology Inc. (NASDAQ:MU)

Current Ratio

The current ratio has exhibited fluctuations over the observed period. Initially, it increased from 2.91 to a peak of 3.4 by June 3, 2021, indicating improving short-term liquidity. Subsequently, it experienced a decline, hitting a low of 2.64 by November 28, 2024. Notably, there was a significant surge reaching 4.46 around August 31, 2023, before the downward trend resumed. Overall, the current ratio shows variability but maintains values generally above 2.0, reflecting a consistent ability to cover current liabilities with current assets, albeit with some periods of reduced liquidity.

Quick Ratio

The quick ratio demonstrates a pattern similar to the current ratio but with somewhat less pronounced peaks. It rose from 1.89 in December 2020 to 2.35 by June 2, 2022, signaling enhanced liquidity excluding inventory. A notable increase occurred around early 2023, peaking at 2.53 on August 31, 2023. Following this peak, a decline to 1.59 by November 28, 2024, occurred, suggesting a contraction in liquid assets relative to current liabilities. Despite this decrease, the ratio mostly remains above 1.5, indicating an adequate position to meet short-term obligations quickly.

Cash Ratio

The cash ratio, indicating the most conservative liquidity measure, saw a rise from 1.24 in December 2020 to a high of 2.06 by March 2, 2023, reflecting strong cash and cash equivalents relative to current liabilities. After this peak, a general declining trend is observed, with the ratio falling to 0.86 by November 27, 2025. The drop below 1.0 in the latter periods signals a reduced cash buffer to cover current liabilities, which may require closer monitoring. Nevertheless, earlier high values suggest periods of strong cash reserves.

The analysis of the quarterly financial data reveals several notable trends in current assets, current liabilities, and the resulting current ratio over the observed periods.

Current Assets

Current assets show a general upward trajectory from the beginning to the end of the timeframe. Starting at approximately US$16.5 billion in December 2020, the value increases steadily to reach nearly US$29.7 billion by November 2025. There are minor fluctuations throughout, such as a slight dip around September 2022 and a few minor declines in other quarters, but the overall trend points to growth in available short-term resources.

Current Liabilities

Current liabilities display a more fluctuating pattern compared to current assets. Beginning near US$5.7 billion in December 2020, there is an initial decrease followed by variability over several quarters, with notable increases especially from early 2024 onwards. By November 2025, current liabilities rise substantially to roughly US$12.1 billion, more than doubling over the examined period. This escalation in liabilities suggests increased short-term obligations potentially linked to operational expansion or changes in financing strategies.

Current Ratio

The current ratio, which measures liquidity by comparing current assets to current liabilities, exhibits significant variation. Early periods show robust liquidity, with ratios consistently above 3.0 and peaking around 4.46 in August 2023. However, after this peak, the current ratio declines gradually, dropping below 3.0 starting in mid-2024 and reaching approximately 2.46 by November 2025. This decreasing trend indicates a reduction in liquidity coverage, implying that liabilities are growing faster than assets in later periods, which could affect the company’s short-term financial flexibility.

In summary, the company’s current assets have increased over time but have been outpaced by a more pronounced rise in current liabilities in recent years. This dynamic has eroded the overall liquidity cushion as reflected in the declining current ratio from mid-2023 onward, pointing toward a tightening in short-term financial conditions.

Trend in Total Quick Assets

Total quick assets generally exhibited an upward trajectory, increasing from approximately 10,723 million US dollars at the end of 2020 to 20,502 million by the end of the third quarter of 2025. There were some periods of decline, notably around late 2022 and early 2023, where quick assets decreased from a high of around 16,456 million in mid-2022 to approximately 12,037 million by August 2023. However, after this dip, the asset base recovered strongly, particularly in 2024 and 2025, indicating renewed accumulation of liquid assets.

Trend in Current Liabilities

Current liabilities displayed a more volatile trend over the same period. Initially, liabilities were in the range of about 5,688 million in late 2020 and fluctuated moderately through 2022, reaching a low point near 4,765 million in mid-2023. Subsequently, current liabilities increased significantly, peaking at 12,060 million by the end of the third quarter of 2025. This sharp rise in liabilities suggests increased obligations or payables concurrent with or following the recovery in quick assets.

Performance of the Quick Ratio

The quick ratio, which measures liquidity and the ability to cover short-term liabilities with the most liquid assets, showed fluctuations that reflect the changes in assets and liabilities. Starting at 1.89 at the end of 2020, it rose to a peak of approximately 2.53 in late 2023, denoting strong liquidity. From this peak, the ratio declined steadily to around 1.7 by the third quarter of 2025, implying a relative weakening of liquidity despite the increase in quick assets, largely due to the proportionally faster growth of current liabilities.

Insights and Observations

The overall pattern indicates a strengthening position in liquid assets with simultaneous growth in short-term obligations over time. The temporary dip in quick assets and liabilities reduction in mid-2023 may indicate an inventory or receivables adjustment or a strategic effort to reduce liabilities. The declining quick ratio toward the end of the period prompts attention as it may signal increased liquidity risk if the trend continues, necessitating monitoring of cash management and short-term financial commitments.

The financial data reveals several notable trends regarding liquidity and short-term financial management over the observed periods.

Total cash assets

Cash holdings demonstrated a general upward trend from December 2020 through March 2022, reaching a peak around 10,227 million US dollars in June 2022. Subsequent periods show some volatility with a decline towards the end of 2022 and early 2023, followed by fluctuations but generally stabilizing above 8,000 million US dollars. Notably, there was another peak in December 2024, reaching approximately 10,811 million US dollars, after which cash assets slightly receded but remained close to this elevated level through mid-2025.

Current liabilities

Current liabilities exhibited an increasing trend over the timeframe. Beginning near 5,688 million US dollars in December 2020, they rose steadily with some fluctuations, experiencing significant increases in late 2024 and throughout 2025. By November 2025, current liabilities reached a level above 12,000 million US dollars, indicating growing short-term obligations relative to the initial period.

Cash ratio

The cash ratio showed considerable variability but generally trended downward after peaking multiple times. Initial periods reflected strong liquidity with ratios above 1.2, reaching as high as 2.06 in March 2023, suggesting substantial coverage of current liabilities by cash assets. However, from late 2023 onward, the ratio declined below 1.0, indicating that cash assets became insufficient to cover current liabilities directly. This downward shift towards and below unity reveals a reduced buffer of liquid cash against short-term debts in recent fiscal quarters.

In summary, while total cash assets remained relatively strong with some periods of decline, the increase in current liabilities outpaced cash reserves in later periods leading to a diminished cash ratio. This trend might imply increased reliance on other assets or financing methods to meet short-term obligations, and points to potential concerns over liquidity management in the more recent quarters analyzed.