Amazon.com Inc. (NASDAQ:AMZN)

Current Ratio

The current ratio exhibits variability over the observed periods. Initially, it increased from 1.05 to a peak of 1.2 by June 30, 2021, indicating an improvement in short-term liquidity. This was followed by a decline, reaching a low of 0.92 by March 31, 2023, suggesting a reduced ability to cover current liabilities with current assets. From this trough, the ratio demonstrated a recovery trend, climbing back above 1.0 around December 31, 2023, and maintaining a slightly above 1.0 level through subsequent quarters, although a modest decline is observed towards September 30, 2025 (1.01). Overall, the trend shows fluctuations with periods of both strengthening and weakening liquidity, ending near the threshold of 1.0, which signifies balanced short-term financial stability.

Quick Ratio

The quick ratio follows a notably declining trend from March 31, 2021 to September 30, 2022, dropping from 0.63 to a low of 0.42, pointing to a diminishing capacity to meet short-term obligations without relying on inventory liquidation. Following this period, there is a mild recovery phase, with the ratio increasing to 0.56 by June 30, 2024. However, this improvement does not persist, as it gradually decreases again to 0.48 by September 30, 2025. The observed lower values relative to 1.0 indicate a conservative liquidity position, with quick assets covering less than half of current liabilities in several quarters, thus signalling relative dependency on inventory or other less liquid assets for short-term obligations.

Cash Ratio

The cash ratio mirrors the quick ratio throughout the periods, exhibiting the same values and trends. This consistent pattern reflects that the company’s cash and cash equivalents relative to current liabilities share the same liquidity fluctuations as quick assets in general. The ratio declines from 0.63 in March 2021 to 0.42 in September 2022, followed by a partial recovery to 0.56 by mid-2024, and subsequently declines again to 0.48 by late 2025. The persistent sub-1.0 levels suggest a cautious liquidity stance, with cash on hand constituting less than half of current liabilities consistently over the observed time frame.

Current Assets

Current assets exhibited a generally upward trend over the observed periods, increasing from approximately 121 billion USD at the end of Q1 2021 to nearly 197 billion USD by Q3 2025. Despite some fluctuations, notable growth phases occurred in the intervals around late 2023 and throughout 2024 into 2025, indicating a strengthening in liquid and short-term asset positions.

Current Liabilities

Current liabilities also rose over the same timeframe, beginning at around 115 billion USD in Q1 2021 and reaching about 195 billion USD by Q3 2025. There was a steady incline, with sharper increases observed around the end of 2022 and continuing through 2024 and 2025, suggesting an expanding short-term obligation load.

Current Ratio

The current ratio demonstrated a fluctuating but overall stable pattern. Initially, it increased from 1.05 to a peak of 1.20 in mid-2021, indicating improved short-term liquidity in that phase. However, from Q1 2022 through most of 2023, the ratio declined and remained below 1.0 for several quarters, signaling periods where current liabilities outpaced current assets, reflecting tighter liquidity conditions.

From late 2023 onwards, a recovery is evident as the current ratio increased steadily, reaching slightly above 1.0 again by early 2024 and maintaining around that level through to Q3 2025. This suggests a stabilization in liquidity, with current assets once again being sufficient to cover short-term liabilities.

Insights

Overall, while both current assets and liabilities have increased considerably, liabilities have grown at a rate that occasionally surpasses assets, impacting liquidity ratios negatively during certain periods. The fluctuations in the current ratio highlight phases of varying liquidity pressure, with recent data indicating a modest improvement in the company’s ability to meet its short-term obligations. Maintaining a current ratio close to or slightly above 1 suggests that the company is managing its working capital prudently despite the growing scale of its operations.

Total Quick Assets

The total quick assets exhibited noticeable fluctuations over the observed periods. Initially, there was an upward trend from March 2021 to June 2021, peaking around 89,894 million USD. This was followed by a decline through September 2022, reaching a low near 58,662 million USD. Starting around December 2022, the total quick assets increased again, reaching levels above 90,000 million USD by mid-2024, and remained relatively stable with slight fluctuations through to September 2025. This pattern suggests periods of liquidity variation, with recovery phases after mid-2022.

Current Liabilities

Current liabilities displayed a generally increasing trend throughout the time horizon. Beginning at approximately 115,404 million USD in March 2021, these liabilities grew steadily with minor period-to-period variations. By September 2025, current liabilities had escalated to about 195,196 million USD, indicating a significant rise in short-term obligations. This increase may reflect growing operational or financial commitments that the company must address in the near term.

Quick Ratio

The quick ratio showed a declining trend from early 2021 to late 2022, dropping from 0.63 to lows around 0.42. This indicated a deterioration in the company's ability to cover current liabilities with quick assets during that period. Beginning in December 2022, the ratio improved modestly to around 0.56 by mid-2024, suggesting a partial recovery in liquidity. However, from mid-2024 to September 2025, the quick ratio declined again toward 0.48, indicating renewed pressure on liquidity. Despite some improvement phases, the ratio consistently remained below 1.0, implying a persistent gap in covering current liabilities with quick assets.

Overall Insights

The combined analysis of quick assets, current liabilities, and the quick ratio reveals a challenging liquidity environment. While there have been periods of recovery in quick assets and temporary improvements in the quick ratio, the ongoing increase in current liabilities has pressured the company's short-term financial stability. The quick ratio remaining below one across all reported periods suggests cautious attention to liquidity management is warranted. The fluctuating quick assets indicate possible shifts in cash, receivables, or other liquid assets, but these have not kept pace with the rising current liabilities, highlighting potential liquidity risk considerations going forward.

The financial data over the observed periods reveals several noteworthy trends in the liquidity and short-term financial stability of the company.

Total Cash Assets

The total cash assets show a fluctuating pattern with notable volatility. Initially, there is an increase from approximately 73.3 billion USD to nearly 90 billion USD during the early quarters of 2021. This is followed by a decline through late 2021 and most of 2022, reaching a low near 58.7 billion USD. Subsequently, cash assets increase again, peaking above 101 billion USD by late 2024, before slightly declining yet remaining above 93 billion USD towards the last recorded quarter in 2025. This suggests episodic increases in cash holdings, potentially reflecting periodic cash inflows or strategic cash management decisions.

Current Liabilities

Current liabilities demonstrate a consistently upward trajectory throughout the period. Beginning at about 115.4 billion USD in early 2021, they escalate steadily to exceed 195 billion USD by late 2025. This continuous increase indicates growing short-term obligations, which could reflect rising operational scale, increased short-term borrowing, or higher accounts payable status. The growth rate in liabilities outpaces that of cash assets, raising questions about the management of short-term obligations.

Cash Ratio

The cash ratio, representing the relationship between cash assets and current liabilities, shows a declining trend from a higher level of approximately 0.63–0.76 in early 2021 down to a range mostly between 0.42 and 0.48 during mid-2022 to late 2025. Although there is some recovery around the end of 2023 and through 2024 (hovering near 0.55–0.56), the ratio remains well below the early 2021 peak. This decline suggests a reduced capacity to cover current liabilities with cash alone, potentially indicating tighter liquidity and higher short-term financial risk.

Overall, the observed data points to increasing current liabilities alongside a more compressed cash ratio, despite fluctuations and occasional rises in total cash holdings. This pattern underscores a scenario where the company's liquidity position relative to its short-term obligations has generally weakened over the reported period, warranting attention to cash flow management and liability structuring.