AMATNEUTRAL

AMAT Current Ratio Analysis

2.51x

Higher than 63% of Technology sector peers

Updated 2645h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.51x means Applied Materials has $2.51 in current assets (like cash and receivables) for every $1 of short-term liabilities, indicating a comfortable ability to pay debts due within a year.

Sector Performance

63th percentile

AMAT

2.51x

Sector Median

1.99x

Sector Avg

15.09x

Prior Period

2.71x(Apr 2026)

↓ Declining
📊

Deep Analysis

The current ratio of 2.51x means Applied Materials has $2.51 in current assets (like cash and receivables) for every $1 of short-term liabilities, indicating a comfortable ability to pay debts due within a year.

This level is above the sector median of 1.95x and places the company in the 63rd percentile among technology peers, suggesting better-than-average liquidity. Trend data is not available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A, so no recent directional insight can be drawn. The combination of a high current ratio with no trend information implies that while the absolute liquidity position appears strong, the lack of trend leaves uncertainty about whether this stability is improving or eroding. This metric supports the overall NEUTRAL verdict because the solid liquidity is a positive, but the absence of trend data prevents a more constructive or cautious tilt.

Frequently Asked Questions

What does the Current Ratio tell investors about AMAT?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does AMAT's Current Ratio compare to its sector?

AMAT's Current Ratio of 2.51x compares to a Technology sector median of 1.99x, placing it in the 63th percentile.

Who are AMAT's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: BILL (1.66x), CRWD (1.53x), SMAR (1.51x), ASML (1.36x), ACN (1.34x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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AMAT

2.51x

Sector Median

1.99x

Sector Avg

15.09x

How AMAT's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.