Apple Inc (AAPL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.54 | 1.50 | 1.32 |
| Quick ratio | 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 | 1.38 | 1.35 | 1.13 |
| 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 |
Apple Inc's liquidity ratios show some fluctuations over time. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from 0.86 to 1.16 in the past five quarters. The ratio experienced some variability but has generally remained above 1, indicating that Apple has had a sufficient level of current assets to cover its current liabilities.
On the other hand, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows more instability with values ranging from 0.47 to 1.44. The low quick ratio in March 2023 may raise some concerns about Apple's ability to meet its short-term obligations without relying on inventory.
Lastly, the cash ratio, which assesses how much of the current liabilities can be covered by cash and cash equivalents, ranges from 0.31 to 1.05. Apple's cash ratio has shown some fluctuations but has generally been above 1, indicating that the company holds an adequate amount of cash to cover its short-term liabilities, with some potential for improved liquidity during certain periods.
Overall, while the current ratio suggests a generally stable liquidity position for Apple Inc, the quick ratio and cash ratio indicate some variability that may require closer monitoring to ensure the company's ability to meet short-term obligations efficiently.
See also:
Apple Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -33.95 | -29.68 | -23.29 | -54.42 | -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 | -20.47 | -16.16 | -17.70 |
The cash conversion cycle of Apple Inc has fluctuated over the past few quarters, indicating variations in its efficiency in managing its cash flows related to its operations. A negative cash conversion cycle represents that Apple is efficiently converting its inventory into cash and collecting receivables from customers faster than paying its suppliers.
In the most recent quarter ending December 31, 2023, Apple's cash conversion cycle was -33.95 days, which improved compared to the previous quarter. This implies that Apple's cash was tied up for approximately 34 days, a decrease from the previous quarter's measure of -29.68 days.
Looking further back, we observe that Apple experienced a significant decrease in efficiency in the quarter ending March 31, 2023, with a cash conversion cycle of -54.42 days. This suggests a decline in the speed of inventory turnover, collection from customers, or managing payables during that period.
Overall, Apple's trending negative cash conversion cycle indicates that the company is managing its working capital effectively, although there have been some fluctuations in efficiency over the quarters. It is crucial for Apple to continue monitoring and optimizing its cash conversion cycle to maintain strong financial health and operational efficiency.