Applied MaterialsXSWX:AMAT 86 Cash Ratio is 0.92 as of Apr. 2026, which is 12% below its 10-year median of 1.05. GuruFocus rates XSWX:AMAT with a GF Score™ of 86/100 and a GF Value™ of CHF167.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,021 Semiconductors companies, Applied Materials ranks worse than 53.87% on this metric.
Applied Materials has a Cash Ratio of 0.92. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Applied Materials's Cash Ratio or its related term are showing as below:
XSWX:AMAT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.35 Med: 1.05 Max: 1.77
Current: 0.92
During the past 13 years, Applied Materials's highest Cash Ratio was 1.77. The lowest was 0.35. And the median was 1.05.
XSWX:AMAT's Cash Ratio is ranked worse than 53.87% of 1021
companies
in the Semiconductors industry
Industry Median: 1.05
vs XSWX:AMAT: 0.92
Applied Materials (XSWX:AMAT) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Applied Materials Cash Ratio Related Terms
Applied Materials Cash Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:AMAT vs LRCX, KLAC, TER: Cash Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Materials Cash Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Materials (XSWX:AMAT) has a Cash Ratio of 0.92 as of Apr. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Applied Materials and its competitors. This is 12% below median its historical median of 1.05. Over the past decade, Applied Materials' Cash Ratio has ranged from 0.35 to 1.77. According to the industry distribution chart, Applied Materials ranks #550 out of 1021 companies in the Semiconductors industry, placing it in the top 53.9%.
Is Applied Materials' Cash Ratio too high?
Applied Materials' current Cash Ratio of 0.92 is 12% below median its 10-year median of 1.05. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 1.77. The Semiconductors industry median Cash Ratio is 1.05. Applied Materials' value of 0.92 is 12.4% below this industry median. Based on the distribution chart, Applied Materials ranks #550 out of 1021 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Applied Materials has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Cash Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #550 out of 1021 companies for Cash Ratio. This places Applied Materials in the lower half of its industry. The industry median Cash Ratio is 1.05. Applied Materials' value of 0.92 is 12.4% below this benchmark. Historically, Applied Materials' own Cash Ratio has ranged from 0.35 to 1.77 over the past decade. While the company's 10-year median is 1.05 vs. the industry median of 1.05, Applied Materials has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Semiconductors company?
The median Cash Ratio among Semiconductors companies is 1.05, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Cash Ratio of 0.92 is 12.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Cash Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Cash Ratio is 0.92, which is 12% below median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (XSWX:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF167.16, compared to a current price of CHF433.45 — trading 159.3% above its estimated fair value. The current Cash Ratio is 0.92, which is 12% below median its 10-year median of 1.05 and 12.4% below the Semiconductors industry median of 1.05. Applied Materials' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Cash Ratio is 0.92 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Materials (XSWX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of CHF433.45 is trading 159.3% above its estimated GF Value™ of CHF167.16.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
Cash Ratio: 0.92 (12% below median its 10-year median of 1.05)
GF Value™: CHF167.16 vs. price of CHF433.45 (159.3% above fair value)
Industry Position: 12.4% below the Semiconductors median (#550 of 1021)
No single metric tells the full story. See the XSWX:AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
86GF Score
Get the complete analysis for XSWX:AMAT
Cash Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:AMAT has been successfully added to your 
