Applied MaterialsHAM:AP2 +8.72%85 Quick Ratio is 1.80 as of Apr. 2026, which is 1% below its 10-year median of 1.82. GuruFocus rates HAM:AP2 with a GF Score™ of 85/100 and a GF Value™ of €180.04 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,029 Semiconductors companies, Applied Materials ranks worse than 51.41% on this metric.
Applied Materials has a quick ratio of 1.80. It generally indicates good short-term financial strength.
The historical rank and industry rank for Applied Materials's Quick Ratio or its related term are showing as below:
HAM:AP2'
s Quick Ratio Range Over the Past 10 Years
Min: 1.35 Med: 1.82 Max: 2.43
Current: 1.8
During the past 13 years, Applied Materials's highest Quick Ratio was 2.43. The lowest was 1.35. And the median was 1.82.
HAM:AP2's Quick Ratio is ranked worse than 51.41% of 1029
companies
in the Semiconductors industry
Industry Median: 1.85
vs HAM:AP2: 1.80
Applied Materials (HAM:AP2) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Applied Materials Quick Ratio Related Terms
Applied Materials Quick Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's Quick 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.
HAM:AP2 vs LRCX, KLAC, TER: Quick Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Applied Materials's Quick Ratio for the fiscal year that ended in Oct. 2025 is calculated as
* 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 (HAM:AP2) has a Quick Ratio of 1.80 as of Apr. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Applied Materials and its competitors. This is near median its historical median of 1.82. Over the past decade, Applied Materials' Quick Ratio has ranged from 1.35 to 2.43. According to the industry distribution chart, Applied Materials ranks #529 out of 1029 companies in the Semiconductors industry, placing it in the top 51.4%.
Is Applied Materials' Quick Ratio too high?
Applied Materials' current Quick Ratio of 1.80 is near median its 10-year median of 1.82. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 2.43. The Semiconductors industry median Quick Ratio is 1.85. Applied Materials' value of 1.80 is 2.7% below this industry median. Based on the distribution chart, Applied Materials ranks #529 out of 1029 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Quick Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #529 out of 1029 companies for Quick Ratio. This places Applied Materials in the lower half of its industry. The industry median Quick Ratio is 1.85. Applied Materials' value of 1.80 is 2.7% below this benchmark. Historically, Applied Materials' own Quick Ratio has ranged from 1.35 to 2.43 over the past decade. While the company's 10-year median is 1.82 vs. the industry median of 1.85, 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 Quick Ratio for a Semiconductors company?
The median Quick Ratio among Semiconductors companies is 1.85, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Quick Ratio of 1.80 is 2.7% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Quick Ratio is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Quick Ratio is 1.80, which is near median its own 10-year median of 1.82. 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 (HAM:AP2) is currently considered Significantly Overvalued. The stock's GF Value™ is €180.04, compared to a current price of €552.30 — trading 206.8% above its estimated fair value. The current Quick Ratio is 1.80, which is near median its 10-year median of 1.82 and 2.7% below the Semiconductors industry median of 1.85. Applied Materials' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Applied Materials (HAM:AP2), the current Quick Ratio is 1.80 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 (HAM:AP2) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of €552.30 is trading 206.8% above its estimated GF Value™ of €180.04.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for HAM:AP2:
Quick Ratio: 1.80 (near median its 10-year median of 1.82)
GF Value™: €180.04 vs. price of €552.30 (206.8% above fair value)
Industry Position: 2.7% below the Semiconductors median (#529 of 1029)
No single metric tells the full story. See the HAM:AP2 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.
85GF Score
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