Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Amazon.com Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the quarterly liquidity ratios over the reported periods reveals significant trends and fluctuations reflective of the company's short-term financial position and ability to meet immediate obligations.
- Current Ratio
- The current ratio shows moderate variability, initially hovering slightly above 1.0 in early 2020 through 2021, with values generally ranging from 1.05 to 1.2. This suggests that during this period, current assets were consistently just enough to cover current liabilities.
- Beginning in early 2022, there is a noticeable decline, with the ratio dropping below 1.0 for multiple quarters (0.96, 0.95, 0.94), indicating a potential tightening in liquidity and a reduced buffer to cover short-term obligations.
- From early 2023 onward, the current ratio exhibits a gradual recovery trend, increasing steadily and returning above 1.0 by the end of 2023 and maintaining a level slightly above 1.0 into 2025. This suggests an improvement in the company's liquidity position in recent periods.
- Quick Ratio
- The quick ratio follows a similar pattern as the current ratio but remains consistently lower, reflecting the exclusion of inventory from current assets in assessing liquidity.
- Initially, values ranged between 0.62 and 0.76 during 2020 and 2021, indicating a stable but relatively conservative liquidity position with quick assets covering roughly 62% to 76% of current liabilities.
- A marked decrease is observed starting in early 2022, with the ratio dropping to as low as 0.42–0.45 through late 2022 and early 2023, signaling reduced liquidity in terms of more liquid assets.
- Following this dip, the quick ratio demonstrates a moderate rebound from 2023 through mid-2025, moving into the 0.53 to 0.56 range, indicating a partial restoration of liquid assets relative to current liabilities, though still below prior peak levels.
- Cash Ratio
- The cash ratio tracks identically with the quick ratio throughout the analyzed periods. This implies that the company's cash and cash equivalents constitute the majority of its quick assets used in this calculation.
- The identical trend corroborates the notable liquidity fluctuations and recovery phases observed in the quick ratio analysis.
Overall, the liquidity analysis indicates that the company experienced a period of tightening short-term liquidity beginning in early 2022, with key ratios falling below ideal levels. However, gradual improvement since 2023 suggests management efforts or operational changes have begun to stabilize or strengthen liquidity. Despite recent improvements, liquidity ratios have not returned to the higher levels observed in 2020 and 2021, signifying a more cautious or constrained liquidity profile in the latest periods.
Current Ratio
Amazon.com Inc., current ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 184,645) | 190,867) | 175,792) | 173,307) | 163,989) | 172,351) | 142,995) | 140,482) | 136,221) | 146,791) | 131,463) | 133,667) | 133,876) | 161,580) | 138,531) | 140,848) | 121,408) | 132,733) | 112,969) | 110,908) | 85,985) | |||||||
| Current liabilities | 176,171) | 179,431) | 161,477) | 158,172) | 152,965) | 164,917) | 145,214) | 148,238) | 147,570) | 155,393) | 140,363) | 140,291) | 139,508) | 142,266) | 123,994) | 117,792) | 115,404) | 126,385) | 101,912) | 93,896) | 79,711) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 1.05 | 1.06 | 1.09 | 1.10 | 1.07 | 1.05 | 0.98 | 0.95 | 0.92 | 0.94 | 0.94 | 0.95 | 0.96 | 1.14 | 1.12 | 1.20 | 1.05 | 1.05 | 1.11 | 1.18 | 1.08 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Home Depot Inc. | 1.34 | 1.35 | 1.30 | 1.31 | 1.27 | 1.41 | 1.39 | 1.18 | 1.11 | 1.01 | 1.13 | 1.06 | 1.10 | 1.23 | 1.36 | 1.30 | 1.17 | 1.08 | 1.08 | 1.10 | 1.04 | |||||||
| Lowe’s Cos. Inc. | 1.17 | 1.23 | 1.21 | 1.26 | 1.25 | 1.10 | 1.20 | 1.11 | 1.17 | 1.02 | 1.19 | 1.16 | 1.17 | 1.19 | 1.38 | 1.30 | 1.20 | 1.01 | 1.04 | 1.06 | 1.09 | |||||||
| TJX Cos. Inc. | 1.23 | 1.21 | 1.19 | 1.20 | 1.20 | 1.21 | 1.16 | 1.17 | 1.25 | 1.27 | 1.29 | 1.33 | 1.52 | 1.46 | 1.41 | 1.51 | 2.20 | 1.24 | 1.22 | 1.25 | 1.23 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 184,645 ÷ 176,171 = 1.05
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity management over the observed periods.
- Current Assets
- Current assets display a generally increasing trend from March 31, 2020, through December 31, 2025, with some fluctuations. Starting at 85,985 million US dollars in March 2020, current assets rose significantly to reach a peak of 172,351 million by December 31, 2023. Following this peak, current assets remain elevated, fluctuating slightly but maintaining a generally higher level compared to earlier periods, ending at 184,645 million US dollars in March 2025. This overall growth indicates an expansion in liquid or near-liquid resources over time.
- Current Liabilities
- Current liabilities increased steadily from 79,711 million US dollars in March 2020 to a high of 179,431 million by December 31, 2024, before slightly declining to 176,171 million in March 2025. The consistent rise in current liabilities reflects an increase in short-term obligations or debts. The growth pace of current liabilities closely parallels that of current assets; however, there are periods where liabilities growth slightly outpaces assets, particularly in the latter half of the timeline.
- Current Ratio
- The current ratio fluctuates between 0.92 and 1.20 throughout the period, reflecting variability in short-term liquidity. Initially, the ratio remained above 1.0 until the end of 2021, indicating that current assets generally exceeded current liabilities during this period, albeit marginally. Beginning in 2022, the ratio dropped below 1.0, with values ranging from 0.92 to 0.98, suggesting that current liabilities temporarily surpassed current assets, which could indicate potential liquidity pressure.
- Starting in 2023, the current ratio improved again, gradually increasing to a range above 1.0 by the second quarter of 2024, signaling an improvement in the company's ability to cover short-term obligations with short-term assets. By March 2025, the current ratio is at 1.05, suggesting moderate liquidity that balances the current assets and liabilities.
In summary, the data illustrates an overall growth in both current assets and current liabilities, implying expanding operational scale or financial activity. Despite some periods of potential liquidity constraint in 2022 and 2023, the current ratio trends toward a balanced and slightly improved position by early 2025. This pattern suggests effective management of working capital to maintain liquidity while accommodating growth.
Quick Ratio
Amazon.com Inc., quick ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 66,207) | 78,779) | 75,091) | 71,178) | 72,852) | 73,387) | 49,605) | 49,529) | 49,343) | 53,888) | 34,947) | 37,478) | 36,393) | 36,220) | 29,944) | 40,380) | 33,834) | 42,122) | 29,930) | 37,466) | 27,201) | |||||||
| Marketable securities | 28,358) | 22,423) | 12,960) | 17,914) | 12,222) | 13,393) | 14,564) | 14,441) | 15,062) | 16,138) | 23,715) | 23,232) | 29,992) | 59,829) | 49,044) | 49,514) | 39,436) | 42,274) | 38,472) | 33,925) | 22,091) | |||||||
| Total quick assets | 94,565) | 101,202) | 88,051) | 89,092) | 85,074) | 86,780) | 64,169) | 63,970) | 64,405) | 70,026) | 58,662) | 60,710) | 66,385) | 96,049) | 78,988) | 89,894) | 73,270) | 84,396) | 68,402) | 71,391) | 49,292) | |||||||
| Current liabilities | 176,171) | 179,431) | 161,477) | 158,172) | 152,965) | 164,917) | 145,214) | 148,238) | 147,570) | 155,393) | 140,363) | 140,291) | 139,508) | 142,266) | 123,994) | 117,792) | 115,404) | 126,385) | 101,912) | 93,896) | 79,711) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 0.54 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Home Depot Inc. | 0.34 | 0.32 | 0.25 | 0.27 | 0.22 | 0.26 | 0.26 | 0.18 | 0.22 | 0.20 | 0.32 | 0.30 | 0.37 | 0.47 | 0.68 | 0.69 | 0.48 | 0.23 | 0.23 | 0.26 | 0.21 | |||||||
| Lowe’s Cos. Inc. | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | |||||||
| TJX Cos. Inc. | 0.55 | 0.59 | 0.42 | 0.49 | 0.53 | 0.59 | 0.35 | 0.40 | 0.49 | 0.64 | 0.65 | 0.77 | 0.95 | 1.01 | 0.93 | 0.92 | 0.96 | 0.50 | 0.33 | 0.39 | 0.40 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 94,565 ÷ 176,171 = 0.54
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrated notable fluctuations over the reported periods. From March 2020 through December 2021, the assets generally increased with some volatility, peaking at 96,049 million USD in December 2021. However, starting in March 2022, a declining trend is observed until September 2022, reaching a low point of 58,662 million USD. Subsequently, the asset values recovered, with alternating rises and stabilizations, culminating in a significant increase to 101,202 million USD by December 2024, followed by a slight decline to 94,565 million USD in March 2025.
- Current liabilities
- Current liabilities increased steadily throughout the entire timeframe. Beginning at 79,711 million USD in March 2020, the liabilities rose almost continuously each quarter, reaching their highest observed value of 179,431 million USD in December 2024. A minor decrease to 176,171 million USD occurred in March 2025. The increase in liabilities shows a consistent upward pressure on the company's short-term obligations.
- Quick ratio
- The quick ratio exhibits a generally low level throughout the periods, indicating limited immediate liquidity relative to current liabilities. Initially, the quick ratio ranged between 0.62 and 0.76 during 2020 and 2021, with occasional dips below 0.7. From March 2022 to December 2023, the ratio declined further, reaching a nadir around 0.42-0.45, evidencing increased strain in covering current liabilities with quick assets. After December 2023, there was a slight recovery in the quick ratio, stabilizing around 0.53 to 0.56 through March 2025, although never reaching levels observed in early 2020. Overall, the ratio reflects a consistent trend of quick assets being substantially less than current liabilities, raising caution about near-term liquidity coverage.
- Summary
- The data indicates that while total quick assets have experienced periods of growth and decline, the overall trajectory includes a recent rebound to high levels by late 2024. However, current liabilities have steadily increased over time at a faster pace, resulting in a quick ratio persistently below 1.0 and often close to or below 0.5 in some quarters. This suggests that the company's immediate liquidity, as measured by quick assets relative to current liabilities, has been constrained throughout much of the observed period, with only modest improvement toward the end. Such conditions may necessitate continued attention to liquidity management and short-term funding strategies.
Cash Ratio
Amazon.com Inc., cash ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 66,207) | 78,779) | 75,091) | 71,178) | 72,852) | 73,387) | 49,605) | 49,529) | 49,343) | 53,888) | 34,947) | 37,478) | 36,393) | 36,220) | 29,944) | 40,380) | 33,834) | 42,122) | 29,930) | 37,466) | 27,201) | |||||||
| Marketable securities | 28,358) | 22,423) | 12,960) | 17,914) | 12,222) | 13,393) | 14,564) | 14,441) | 15,062) | 16,138) | 23,715) | 23,232) | 29,992) | 59,829) | 49,044) | 49,514) | 39,436) | 42,274) | 38,472) | 33,925) | 22,091) | |||||||
| Total cash assets | 94,565) | 101,202) | 88,051) | 89,092) | 85,074) | 86,780) | 64,169) | 63,970) | 64,405) | 70,026) | 58,662) | 60,710) | 66,385) | 96,049) | 78,988) | 89,894) | 73,270) | 84,396) | 68,402) | 71,391) | 49,292) | |||||||
| Current liabilities | 176,171) | 179,431) | 161,477) | 158,172) | 152,965) | 164,917) | 145,214) | 148,238) | 147,570) | 155,393) | 140,363) | 140,291) | 139,508) | 142,266) | 123,994) | 117,792) | 115,404) | 126,385) | 101,912) | 93,896) | 79,711) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.54 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Home Depot Inc. | 0.18 | 0.17 | 0.09 | 0.12 | 0.05 | 0.12 | 0.10 | 0.05 | 0.09 | 0.08 | 0.19 | 0.17 | 0.24 | 0.34 | 0.58 | 0.58 | 0.37 | 0.12 | 0.11 | 0.14 | 0.10 | |||||||
| Lowe’s Cos. Inc. | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | |||||||
| TJX Cos. Inc. | 0.50 | 0.54 | 0.37 | 0.44 | 0.48 | 0.53 | 0.30 | 0.35 | 0.43 | 0.59 | 0.60 | 0.71 | 0.89 | 0.97 | 0.90 | 0.87 | 0.92 | 0.45 | 0.27 | 0.33 | 0.34 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 94,565 ÷ 176,171 = 0.54
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in liquidity and short-term financial position over the observed periods.
- Total Cash Assets
- Total cash assets fluctuate throughout the quarters, showing a peak and trough pattern. Starting at $49,292 million in March 2020, there is a substantial increase to $71,391 million by June 2020. This is followed by moderate declines and subsequent fluctuations, with a significant drop to $58,662 million by September 2022. However, cash assets rebound towards the end of the period, reaching a high of $101,202 million by March 2025. This indicates periods of cash accumulation as well as drawdowns, possibly linked to operating cash flow cycles or strategic investments.
- Current Liabilities
- Current liabilities display an overall increasing trend from $79,711 million in March 2020 to a peak of $179,431 million in December 2024, before slightly decreasing to $176,171 million in March 2025. The growth in current liabilities generally outpaces the change in cash assets, suggesting an expanding short-term obligation base. This escalation could denote increased operational scale or higher short-term financing requirements.
- Cash Ratio
- The cash ratio, which measures the ability to cover current liabilities with cash assets, varies between approximately 0.42 and 0.76 across the quarters. It starts at 0.62 in March 2020 and peaks intermittently at 0.76 in June 2020 and June 2021. From March 2022 onward, the cash ratio generally declines to values near 0.42-0.45 in late 2022 and early 2023, indicating a reduced proportion of cash relative to current liabilities. A gradual recovery is observed thereafter, with the ratio rising to approximately 0.56 by March 2025. Despite fluctuations, the cash ratio remains below 1.0 throughout, indicating that cash alone is insufficient to cover current liabilities at any point, which implies reliance on other liquid assets or financing sources to meet obligations.
Overall, the data suggests a pattern of increasing current liabilities accompanied by moderate volatility in cash holdings. The decrease in the cash ratio during certain periods highlights a potential tightening in liquidity coverage, although subsequent recovery points to improved cash management or asset allocation strategies in more recent quarters.