Apple Inc (AAPL)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.87 | 0.95 | 1.04 | 1.07 | 0.99 | 0.98 | 0.94 | 0.94 | 0.88 | 0.86 | 0.93 | 1.04 | 1.07 | 1.06 | 1.14 | 1.16 | 1.36 | 1.47 | 1.50 | 1.60 |
| Quick ratio | 0.75 | 0.80 | 0.87 | 0.92 | 0.84 | 0.81 | 0.47 | 0.77 | 0.71 | 0.70 | 0.76 | 0.88 | 0.91 | 0.89 | 0.97 | 1.02 | 1.22 | 1.31 | 1.30 | 1.44 |
| Cash ratio | 0.37 | 0.47 | 0.54 | 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 |
The liquidity ratios of Apple Inc provide insight into the company's ability to meet its short-term financial obligations. The current ratio, which compares current assets to current liabilities, has fluctuated over the periods, ranging from 0.87 to 1.60. A ratio below 1 indicates the company may have difficulty meeting its short-term liabilities, while a ratio above 1 suggests it has a sufficient buffer.
The quick ratio, a more stringent measure of liquidity excluding inventory, shows a similar trend to the current ratio, ranging from 0.47 to 1.44. A quick ratio below 1 may signal potential liquidity issues, while a ratio above 1 indicates a stronger ability to cover short-term obligations without relying on inventory.
The cash ratio, which specifically measures a company's ability to cover its current liabilities with its cash and cash equivalents, ranges from 0.31 to 1.05 over the periods. A lower cash ratio implies that a significant portion of current liabilities may not be covered by cash on hand, while a higher ratio suggests a stronger ability to pay off short-term obligations promptly.
Overall, Apple Inc's liquidity ratios show some variability, with periods of stronger and weaker liquidity positions. Investors and analysts may want to monitor these ratios closely to assess the company's short-term financial health and ability to weather economic uncertainties.
See also:
Apple Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -33.37 | -23.59 | -22.34 | -31.81 | -27.39 | -21.73 | -53.03 | -24.38 | -30.04 | -24.13 | -27.86 | -41.46 | -23.09 | -21.02 | -21.61 | -33.95 | -23.46 | -17.49 | -15.22 | -26.01 |
The cash conversion cycle of Apple Inc has shown fluctuations over the past few quarters. The cycle has been mostly negative, indicating that Apple is able to convert its investments in inventory into cash quickly and efficiently.
In the latest quarter, the cash conversion cycle was reported at -33.37 days, indicating that Apple takes approximately 33 days to convert its inventory investments into cash. This negative value signifies that Apple is able to sell its products and collect cash from customers relatively faster than it takes to pay its suppliers for inventory.
Overall, the trend in the cash conversion cycle for Apple has been volatile, with some quarters showing a shorter cycle and others a longer one. It is essential for Apple to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow management and efficiency in its operations.