Micron Technology Inc. (NASDAQ:MU)

The financial ratios analyzed demonstrate varying liquidity trends over the observed quarters.

Current Ratio

The current ratio has generally trended upward from late 2019 until mid-2023, increasing from 2.56 to a peak of 4.46. This indicates an improving ability to cover short-term liabilities with current assets. However, after August 2023, there is a noticeable decline to 2.52 by August 2025, suggesting a weakening liquidity position in the most recent periods.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio but with less pronounced fluctuations. Starting at 1.74 in late 2019, it ascends to a peak of 2.53 in September 2023, reflecting improved short-term liquidity excluding inventories. Post-peak, a steady decrease is evident, dropping to 1.71 by August 2025, indicating a reduced buffer of liquid assets relative to current liabilities.

Cash Ratio

The cash ratio shows notable volatility. It rose from 1.20 in late 2019 to a high point of 2.06 in March 2023, evidencing increased cash and cash equivalents relative to current liabilities. Subsequently, a significant decline occurs, falling below 1.00 by November 2024 and fluctuating slightly thereafter, ending at 0.90 in August 2025. This decline illustrates a reduced immediate liquidity position based strictly on cash resources.

Overall, the liquidity ratios indicate strengthening liquidity through early to mid-2023, followed by a marked reversal with ratios diminishing into mid-2025. The current and quick ratios remain above 1.5 in the latest periods, implying the company maintains a reasonable short-term financial stability, though the reduction in the cash ratio suggests caution regarding cash availability.

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

Current Assets

Current assets exhibit an overall upward trend, beginning at approximately $16.2 billion and growing steadily with some short-term fluctuations. There is a notable dip during late 2022 and early 2023, followed by a recovery and a significant increase towards the end of the data range, reaching nearly $28.8 billion.

Current Liabilities

Current liabilities fluctuate more irregularly but also show a general increasing pattern. The values start at about $6.3 billion and reach a peak above $11.4 billion by the final period. Several periods demonstrate considerable volatility, particularly in the latter half of the timeline with sharp increases around late 2024 and early 2025.

Current Ratio

The current ratio remains consistently above 2.5 throughout, indicating a strong liquidity position overall. Early values fluctuate modestly between 2.56 and 2.91, then increase significantly during 2023, peaking near 4.46 which suggests improved short-term financial strength during that time. Following this peak, the ratio declines gradually but remains comfortably above 2.5 through the end, showing sustained adequate coverage of current liabilities by current assets despite the rise in liabilities.

In summary, the entity maintains a robust liquidity profile with expanding current assets supporting generally rising current liabilities. The fluctuations in current ratio reflect periods of strengthening liquidity notably in 2023, followed by normalization as liabilities catch up. The final observations suggest a well-managed balance between assets and liabilities with capacity to meet short-term obligations effectively.

The analysis of the quarterly financial data reveals several key trends regarding liquidity and short-term financial health over the examined periods.

Total Quick Assets

Total quick assets generally exhibited an upward trend from late 2019 through mid-2022, increasing from approximately $11,007 million to a peak near $16,456 million. This growth demonstrates an improving liquidity position initially. However, from late 2022 through early 2023, there was a decline in total quick assets, dropping to around $12,781 million by mid-2023. Subsequently, the asset base rebounded, increasing again to surpass previous highs by mid-2025, reaching nearly $19,572 million. This pattern suggests periods of fluctuation, but an overall strengthening of liquidity resources at more recent dates.

Current Liabilities

Current liabilities showed some variability but with a clear upward trajectory across the timeframe. Starting at about $6,317 million at the end of 2019, liabilities decreased moderately through early 2021, reaching a low near $5,255 million by mid-2023. Thereafter, current liabilities rose significantly, more than doubling to approximately $11,454 million by mid-2025. The increases in liabilities, particularly in the latter periods, indicate growing short-term obligations which may affect liquidity pressures despite increases in quick assets.

Quick Ratio

The quick ratio, a measure of short-term liquidity calculated as quick assets divided by current liabilities, showed considerable variation over the reported quarters. The ratio ranged from 1.59 to 2.53, mostly staying above 1.7, which generally suggests adequate liquidity to cover immediate obligations. The ratio experienced a high point around mid-2021 and early 2023, corresponding to peaks in quick assets and troughs in current liabilities. However, the ratio declined notably after early 2023, reaching a low of 1.59 by late 2024, reflecting the combined effect of increased liabilities and moderate improvement in quick assets. This signals a tightening liquidity position but still maintaining a ratio above 1, indicating coverage of short-term liabilities.

Overall, the financial data depict an organization that faced fluctuating liquidity positions influenced by shifts in both quick assets and current liabilities. Despite fluctuations, the company maintained a quick ratio predominantly above 1.7, suggesting sound short-term financial stability over most periods. The marked increase in current liabilities in the latest periods warrants attention as it may necessitate ongoing monitoring to ensure liquidity remains sufficient to meet obligations without stress.

The analysis of the financial data reveals several key trends over the observed periods. The total cash assets exhibited fluctuations but generally maintained a level above US$7,500 million, peaking at US$10,811 million in August 2025. There was a noticeable increase in cash assets from late 2019 through early 2022, followed by some variability in subsequent quarters. Despite this, a slight downward trend can be observed towards early 2024 before a recovery is seen by mid-2025.

Current liabilities displayed a relatively variable pattern, with values mostly ranging between US$5,200 million and US$9,200 million. Notably, there was a significant increase in liabilities starting from mid-2023, reaching a peak of US$11,454 million in February 2025. This escalation suggests a growing level of short-term financial obligations that could impact liquidity if not matched by asset growth.

The cash ratio, a liquidity metric comparing cash assets to current liabilities, showed considerable fluctuation. It remained above 1.0 for most periods until the first half of 2024, indicating that cash assets generally exceeded current liabilities, supporting a strong liquidity position. However, from early 2024 onward, the cash ratio declined below 1.0, reaching a low of 0.84 before modestly recovering to 0.90 by August 2025. This decline indicates deteriorating liquidity, with cash assets covering less than current liabilities in recent quarters.

Total Cash Assets

Generally stable with interim growth peaking at over US$10.8 billion. Declined somewhat in early 2024 but showed improvement by mid-2025.

Current Liabilities

Fluctuated substantially with a marked increase starting mid-2023, culminating in high short-term obligations nearing US$11.5 billion by early 2025.

Cash Ratio

Maintained a liquidity buffer above 1.0 until early 2024, suggesting adequate short-term asset coverage. The ratio worsened below 1.0 thereafter, signifying tighter liquidity conditions.

Overall, while the company maintained strong cash reserves relative to liabilities through the majority of the timeline, the recent trends point to increased current liabilities outpacing cash assets. This shift highlights potential liquidity pressures and the need for strategic management of cash and short-term obligations going forward.