Apple Inc (AAPL)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 143,566,000 | 135,405,000 | 134,836,000 | 143,713,000 | 162,819,000 |
| Total current liabilities | US$ in thousands | 145,308,000 | 153,982,000 | 125,481,000 | 105,392,000 | 105,718,000 |
| Current ratio | 0.99 | 0.88 | 1.07 | 1.36 | 1.54 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $143,566,000K ÷ $145,308,000K
= 0.99
The current ratio is a measure of a company's ability to meet its short-term obligations using its short-term assets. A higher current ratio indicates a better ability to pay off short-term liabilities. Apple Inc's current ratio has fluctuated over the past five years, as seen in the table.
In 2023, Apple's current ratio stands at 0.99, a decrease from the previous year's 0.88. This suggests that the company's short-term assets may not be as sufficient as in the previous year to cover its current liabilities.
Looking back to 2021, the current ratio was 1.07, which indicates a decrease compared to the two preceding years. This suggests a reduced ability to meet short-term obligations using current assets in 2021.
In 2020, the current ratio declined substantially to 1.36 from 1.54 in 2019. This may reflect a decrease in the company's ability to cover its short-term liabilities using its current assets.
The decreasing trend in the current ratio suggests that Apple Inc's liquidity position has weakened over the past few years, meaning the company may have less capacity to cover its short-term obligations using its current assets.
Further analysis of Apple's cash position, accounts receivable, and inventory may provide insights into the factors contributing to the decreasing current ratio. Additionally, this trend may also indicate a need for the company to focus on managing its short-term assets and liabilities to improve its liquidity position.
Peer comparison
Sep 30, 2023