Amazon.com Inc (AMZN)
Cash 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 and cash equivalents | US$ in thousands | 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 | 36,092,000 | 23,255,000 | 22,616,000 | 23,115,000 |
| Short-term investments | US$ in thousands | 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 | 18,929,000 | 20,146,000 | 18,847,000 | 13,905,000 |
| Total current liabilities | US$ in thousands | 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 | 87,812,000 | 72,136,000 | 69,678,000 | 63,695,000 |
| Cash ratio | 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 | 0.63 | 0.60 | 0.60 | 0.58 |
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 shown fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was 0.53, indicating that Amazon had $0.53 of cash and cash equivalents for every dollar of current liabilities. This represents an improvement compared to the previous quarter's ratio of 0.44 in Q3 2023.
Looking at the trend over the past year, the cash ratio has remained relatively stable, hovering around the range of 0.42 to 0.48. This suggests that Amazon has maintained a strong liquidity position, with adequate cash reserves to meet its short-term obligations.
It is important to note that while a high cash ratio indicates a strong ability to cover short-term liabilities, excessively high levels of cash may signal that the company is not effectively utilizing its resources to generate returns. On the other hand, a low cash ratio may raise concerns about the company's liquidity and ability to meet its obligations.
Overall, the analysis of Amazon.com Inc.'s cash ratio indicates a consistent and satisfactory liquidity position, with the company effectively managing its cash resources to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023