Amazon.com Inc (AMZN)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	78,779,000	73,387,000	53,888,000	36,220,000	42,122,000
Short-term investments	US$ in thousands	22,423,000	13,393,000	16,138,000	59,829,000	42,274,000
Total current liabilities	US$ in thousands	179,431,000	164,917,000	155,393,000	142,266,000	126,385,000
Cash ratio		0.56	0.53	0.45	0.68	0.67

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($78,779,000K + $22,423,000K) ÷ $179,431,000K
= 0.56

The cash ratio of Amazon.com Inc has shown some fluctuations over the years. As of December 31, 2020, the cash ratio was 0.67, indicating that for every dollar of current liabilities, Amazon had $0.67 in cash or cash equivalents. The ratio increased to 0.68 by the end of 2021, suggesting a slight improvement in the company's ability to cover its short-term obligations with cash on hand.

However, there was a notable decline in the cash ratio to 0.45 by the end of 2022, which may raise some concerns about Amazon's liquidity position. The ratio improved slightly to 0.53 by the end of 2023 and further increased to 0.56 by the end of 2024, showing a positive trend in the company's cash position relative to its current liabilities.

Overall, Amazon's cash ratio indicates that the company has maintained a reasonable level of liquidity over the years, with fluctuations reflecting changes in its cash holdings and short-term obligations. It is essential for investors and stakeholders to monitor this ratio to assess Amazon's ability to meet its short-term financial obligations using its available cash resources.