Apple Inc (AAPL)
Quick 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 | 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 |
| Receivables | US$ in thousands | 50,102,000 | 60,985,000 | 39,186,000 | — | 54,180,000 | 60,932,000 | 42,242,000 | 45,400,000 | 65,253,000 | 51,506,000 | 33,908,000 | 33,036,000 | 58,620,000 | 37,445,000 | 32,075,000 | 30,677,000 | 39,946,000 | 45,804,000 | 26,474,000 | 26,278,000 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,760,000K
+ $32,340,000K
+ $50,102,000K)
÷ $133,973,000K
= 0.92
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that the company can meet its short-term obligations without relying on selling inventory.
Analyzing Apple Inc's quick ratio over the past several quarters, we observe fluctuations within a range. In the most recent quarter, the quick ratio stands at 0.92, implying that the company had $0.92 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively strong ability to meet short-term obligations without relying solely on inventory liquidation.
Looking further back, we see some variability in the quick ratio, with fluctuations observed over the quarters. The trend shows that the quick ratio has decreased from higher levels in the past to the current 0.92, possibly indicating a decrease in liquidity or increase in short-term liabilities compared to the previous periods.
It is important to note that a quick ratio below 1 may raise concerns about a company's ability to cover short-term liabilities without relying on selling inventory. Therefore, Apple Inc's recent quick ratio of 0.92 may warrant monitoring to assess any potential liquidity challenges or changes in the company's working capital management.
Peer comparison
Dec 31, 2023