Amazon.com Inc (AMZN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	73,387,000	53,888,000	36,220,000	42,122,000	36,092,000
Short-term investments	US$ in thousands	13,393,000	16,138,000	59,829,000	42,274,000	18,929,000
Total current liabilities	US$ in thousands	164,917,000	155,393,000	142,266,000	126,385,000	87,812,000
Cash ratio		0.53	0.45	0.68	0.67	0.63

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($73,387,000K + $13,393,000K) ÷ $164,917,000K
= 0.53

The cash ratio of Amazon.com Inc. has fluctuated over the past five years, ranging from 0.45 to 0.68. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off short-term obligations using readily available cash.

The cash ratio was lowest in 2022 at 0.45, indicating that Amazon had relatively lower cash reserves compared to its short-term liabilities. However, the ratio increased in 2023 to 0.53, showing an improvement in Amazon's liquidity position.

In 2021, the cash ratio was relatively high at 0.68, suggesting that Amazon had a higher proportion of cash and cash equivalents compared to its short-term liabilities that year. The ratios for 2020 and 2019 were 0.67 and 0.63, respectively, indicating consistent liquidity levels over those years.

Overall, the trend in Amazon's cash ratio shows fluctuations but generally indicates a reasonable ability to meet its short-term obligations with its available cash resources. It is essential for investors and stakeholders to monitor this ratio to assess the company's liquidity position and financial health.