Amazon.com Inc (AMZN)
Quick 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 | 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 |
| Receivables | US$ in thousands | 52,253,000 | 43,420,000 | 39,925,000 | 37,646,000 | 42,360,000 | 36,154,000 | 34,804,000 | 32,504,000 | 32,891,000 | 28,610,000 | 26,835,000 | 24,289,000 | 24,542,000 | 20,832,000 | 19,918,000 | 17,836,000 | 20,816,000 | 16,887,000 | 16,747,000 | 15,979,000 |
| 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 |
| Quick ratio | 0.84 | 0.74 | 0.70 | 0.69 | 0.72 | 0.68 | 0.68 | 0.71 | 0.91 | 0.87 | 0.99 | 0.85 | 0.86 | 0.88 | 0.97 | 0.84 | 0.86 | 0.84 | 0.84 | 0.83 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($73,387,000K
+ $13,393,000K
+ $52,253,000K)
÷ $164,917,000K
= 0.84
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that a company has enough liquid assets to cover its current liabilities.
Analyzing the quick ratio for Amazon.com Inc. over the past eight quarters reveals fluctuations in its ability to cover short-term obligations with liquid assets.
The quick ratio ranged from 0.68 to 0.84 during Q1 2022 to Q4 2023. The ratio hovered below 0.75 for most periods, indicating that Amazon.com Inc. had insufficient liquid assets to fully cover its current liabilities during these quarters.
The quick ratio hit its lowest point in Q2 2022 at 0.68, signaling a potential liquidity challenge for the company during that period. However, there was a slight improvement in the quick ratio in the most recent quarter, Q4 2023, reaching 0.84. This increase suggests that Amazon.com Inc. may have strengthened its ability to meet short-term obligations with liquid assets.
Overall, the trend in Amazon.com Inc.'s quick ratio indicates variability in its short-term liquidity position over the past eight quarters. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023