Apple Inc (AAPL)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,760,000 | 29,965,000 | 28,408,000 | 24,687,000 | 20,535,000 | 23,646,000 | 27,502,000 | 28,098,000 | 37,119,000 | 34,940,000 | 34,050,000 | 38,466,000 | 36,010,000 | 38,016,000 | 33,383,000 | 40,174,000 | 39,771,000 | 48,844,000 | 50,530,000 | 37,988,000 |
| Short-term investments | US$ in thousands | 32,340,000 | 31,590,000 | 34,074,000 | 31,185,000 | 30,820,000 | 24,658,000 | 20,729,000 | 23,413,000 | 26,794,000 | 27,699,000 | 27,646,000 | 31,368,000 | 40,816,000 | 52,927,000 | 59,642,000 | 53,877,000 | 67,391,000 | 51,713,000 | 44,084,000 | 42,104,000 |
| Total current liabilities | US$ in thousands | 133,973,000 | 145,308,000 | 124,963,000 | 120,075,000 | 137,286,000 | 153,982,000 | 129,873,000 | 127,508,000 | 147,574,000 | 125,481,000 | 107,754,000 | 106,385,000 | 132,507,000 | 105,392,000 | 95,318,000 | 96,094,000 | 102,161,000 | 105,718,000 | 89,704,000 | 93,772,000 |
| Cash ratio | 0.55 | 0.42 | 0.50 | 0.47 | 0.37 | 0.31 | 0.37 | 0.40 | 0.43 | 0.50 | 0.57 | 0.66 | 0.58 | 0.86 | 0.98 | 0.98 | 1.05 | 0.95 | 1.05 | 0.85 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,760,000K
+ $32,340,000K)
÷ $133,973,000K
= 0.55
The cash ratio of Apple Inc has shown fluctuations over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
From Dec 2019 to Dec 2021, Apple Inc's cash ratio ranged between 0.85 and 1.05, suggesting a healthy position in terms of liquidity. However, in the latter half of 2022 and throughout 2023, the cash ratio declined to as low as 0.31 in Sep 2022, indicating a decrease in the company's ability to cover its short-term obligations with its available cash.
It is important to note that context is key when interpreting the cash ratio, as a low ratio could indicate that the company has deployed its cash into investments or other assets, which could potentially generate higher returns in the long term but may pose liquidity risks in the short term.
Overall, Apple Inc's cash ratio has displayed some volatility in recent periods, and further analysis of its cash management strategies and investment decisions would be necessary to assess the implications of these fluctuations.
Peer comparison
Dec 31, 2023