Amazon.com Inc (AMZN)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 78,779,000 | 75,091,000 | 71,178,000 | 72,852,000 | 73,387,000 | 49,605,000 | 49,529,000 | 49,343,000 | 53,888,000 | 34,947,000 | 37,478,000 | 36,393,000 | 36,220,000 | 29,944,000 | 40,380,000 | 33,834,000 | 42,122,000 | 29,930,000 | 37,466,000 | 27,201,000 |
| Short-term investments | US$ in thousands | 22,423,000 | 12,960,000 | 17,914,000 | 12,222,000 | 13,393,000 | 14,564,000 | 14,441,000 | 15,062,000 | 16,138,000 | 23,715,000 | 23,232,000 | 29,992,000 | 59,829,000 | 49,044,000 | 49,514,000 | 39,436,000 | 42,274,000 | 38,472,000 | 33,925,000 | 22,091,000 |
| Total current liabilities | US$ in thousands | 179,431,000 | 161,477,000 | 158,172,000 | 152,965,000 | 164,917,000 | 145,214,000 | 148,238,000 | 147,570,000 | 155,393,000 | 140,363,000 | 140,291,000 | 139,508,000 | 142,266,000 | 123,994,000 | 117,792,000 | 115,404,000 | 126,385,000 | 101,912,000 | 93,896,000 | 79,711,000 |
| Cash ratio | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | 0.68 | 0.64 | 0.76 | 0.63 | 0.67 | 0.67 | 0.76 | 0.62 |
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 fluctuations over the years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The trend in Amazon's cash ratio indicates that the company has maintained a relatively healthy level of liquidity, with the ratio generally staying above 0.40, which is considered a benchmark for a strong cash position.
There are instances where the cash ratio increased, such as in June 2020 and June 2021, indicating a temporary increase in cash reserves relative to short-term liabilities during those periods. Conversely, there are instances of a slight decrease in the cash ratio, like in March 2022, suggesting a potential decrease in cash reserves relative to short-term liabilities at that time.
Overall, Amazon's cash ratio has remained within a reasonable range, reflecting the company's ability to cover its short-term obligations with its available cash resources. However, it is essential to further analyze other liquidity ratios and the company's overall financial health to gain a more comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2024