Amazon.com Inc (AMZN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 172,351,000 | 146,791,000 | 161,580,000 | 132,733,000 | 96,334,000 |
| Total current liabilities | US$ in thousands | 164,917,000 | 155,393,000 | 142,266,000 | 126,385,000 | 87,812,000 |
| Current ratio | 1.05 | 0.94 | 1.14 | 1.05 | 1.10 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $172,351,000K ÷ $164,917,000K
= 1.05
The current ratio of Amazon.com Inc. has fluctuated over the past five years, ranging from 0.94 to 1.14. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1 or higher is generally considered favorable, as it indicates that the company has more current assets than current liabilities.
In 2023, the current ratio stands at 1.05, indicating that Amazon.com Inc. has $1.05 in current assets for every $1 in current liabilities. This suggests that the company has sufficient current assets to cover its short-term obligations.
Comparing this to previous years, the current ratio was lower in 2022 at 0.94, which may have indicated a tighter liquidity position or potentially higher short-term liabilities relative to current assets. The increase in the current ratio to 1.14 in 2021 suggests the company strengthened its liquidity position, but the ratio decreased to 1.05 in 2020 and 1.10 in 2019.
Overall, while the current ratio for Amazon.com Inc. has varied, it is important to monitor trends over time to assess the company's liquidity and short-term financial health.
Peer comparison
Dec 31, 2023