Apple Inc (AAPL)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 29,943,000 | 29,965,000 | 23,646,000 | 34,940,000 | 38,016,000 |
| Short-term investments | US$ in thousands | 35,228,000 | 31,590,000 | 24,658,000 | 27,699,000 | 52,927,000 |
| Receivables | US$ in thousands | 66,243,000 | 60,985,000 | 60,932,000 | 51,506,000 | 37,445,000 |
| Total current liabilities | US$ in thousands | 176,392,000 | 145,308,000 | 153,982,000 | 125,481,000 | 105,392,000 |
| Quick ratio | 0.75 | 0.84 | 0.71 | 0.91 | 1.22 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($29,943,000K
+ $35,228,000K
+ $66,243,000K)
÷ $176,392,000K
= 0.75
The quick ratio, also known as the acid-test ratio, measures Apple Inc's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty covering its current liabilities with its quick assets alone.
Apple's quick ratio has fluctuated over the past five years, with the latest figure at 0.75 as of September 30, 2024. This implies that Apple may face challenges in meeting its short-term obligations using its quick assets only.
Comparing this ratio to previous years, we observe a declining trend from 2020 to 2024, with the ratio dropping from a healthy 1.22 in 2020 to 0.75 in 2024. This downward trend suggests a decrease in Apple's ability to quickly cover its current liabilities.
Further analysis would be needed to understand the factors driving this decline in the quick ratio and assess the overall liquidity position of Apple Inc. It is important to consider the composition of quick assets and current liabilities to get a more complete picture of the company's short-term financial health.
Peer comparison
Sep 30, 2024