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-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
The liquidity position, as indicated by the observed ratios, demonstrates a generally improving trend over the analyzed period. While initial values suggest a constrained short-term asset coverage of current liabilities, subsequent quarters reveal a strengthening of these metrics. The fluctuations, though present, generally point towards increased financial flexibility towards the end of the observation window.
- Current Ratio
- The current ratio exhibited a slight decline from 0.96 in March 2022 to a low of 0.92 in March 2023. However, a consistent upward trend is then observed, peaking at 1.10 in June 2024 before stabilizing around 1.05. This suggests an increasing ability to cover short-term liabilities with short-term assets over time. The ratio consistently remains below 1.2, indicating a moderate level of liquidity.
- Quick Ratio
- The quick ratio, a more conservative measure of liquidity, followed a similar pattern to the current ratio. It decreased from 0.48 in March 2022 to 0.42 in September 2022, remaining relatively stable through the first half of 2023. A notable increase is then seen, reaching 0.56 in June 2024, and holding relatively steady through December 2024. A slight decrease is observed in the first half of 2025, followed by a return to 0.56 by December 2025. This indicates an improving, but still limited, ability to meet short-term obligations with the most liquid assets.
- Cash Ratio
- The cash ratio mirrored the trends of the current and quick ratios. It began at 0.48 in March 2022, experienced a similar dip to 0.42 by September 2022, and then demonstrated a consistent increase, reaching 0.56 by December 2025. This suggests a strengthening capacity to cover immediate liabilities with cash and cash equivalents. The ratio remains relatively stable, indicating a consistent approach to maintaining readily available funds.
Overall, the observed liquidity ratios suggest a gradual improvement in the company’s short-term financial health. The increases in all three ratios indicate a strengthening ability to meet short-term obligations, though the quick and cash ratios remain relatively low, suggesting a reliance on inventory and accounts receivable for liquidity. The stabilization of these ratios towards the end of the period suggests a more consistent liquidity position.
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Current Ratio
Amazon.com Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 229,083) | 196,866) | 191,420) | 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) | |||||
| Current liabilities | 218,005) | 195,196) | 186,921) | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.05 | 1.01 | 1.02 | 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 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | 1.11 | 1.13 | 1.15 | 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 | |||||
| Lowe’s Cos. Inc. | 1.09 | 1.13 | 1.22 | 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 | |||||
| TJX Cos. Inc. | 1.18 | 1.19 | 1.21 | 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 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 229,083 ÷ 218,005 = 1.05
2 Click competitor name to see calculations.
The current ratio exhibited a generally improving trend over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicated a ratio below one, suggesting potential short-term liquidity concerns, but the ratio demonstrated increasing strength towards the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The current ratio began at 0.96 and remained relatively stable, fluctuating between 0.94 and 0.95 for the first three quarters. A slight increase to 0.94 was observed by the end of 2022, indicating minimal change in the company’s ability to cover short-term liabilities with short-term assets during this timeframe. The ratio consistently remained below 1.0, indicating that current liabilities exceeded current assets.
- Improvement Phase (Mar 31, 2023 – Dec 31, 2023)
- A gradual improvement in the current ratio was evident throughout 2023. Starting at 0.92, the ratio increased to 0.95 by June 30, 2023, and further to 0.98 by September 30, 2023. This trend culminated in a ratio of 1.05 by December 31, 2023, signifying that current assets finally surpassed current liabilities. This suggests improved liquidity and a stronger short-term financial position.
- Stabilization and Fluctuation (Mar 31, 2024 – Dec 31, 2025)
- Following the improvement in 2023, the current ratio stabilized above 1.0, ranging from 1.05 to 1.10 in the first half of 2024. A slight decrease to 1.01 was observed by September 30, 2025, before recovering to 1.05 by the end of 2025. This indicates a generally healthy liquidity position, although some quarterly fluctuations were present. The ratio remained above the benchmark of 1.0 for the majority of this period.
- Overall Trend
- The overall trend demonstrates a positive shift in short-term liquidity. The company moved from a position where it had fewer current assets than current liabilities to a position where it consistently had more current assets than current liabilities. While some quarterly variations occurred, the general trajectory indicates strengthening financial health regarding short-term obligations.
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Quick Ratio
Amazon.com Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 86,810) | 66,922) | 57,741) | 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) | |||||
| Marketable securities | 36,219) | 27,275) | 35,439) | 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) | |||||
| Total quick assets | 123,029) | 94,197) | 93,180) | 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) | |||||
| Current liabilities | 218,005) | 195,196) | 186,921) | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.56 | 0.48 | 0.50 | 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 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | 0.23 | 0.25 | 0.25 | 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 | |||||
| Lowe’s Cos. Inc. | 0.11 | 0.19 | 0.26 | 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 | |||||
| TJX Cos. Inc. | 0.53 | 0.44 | 0.54 | 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 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 123,029 ÷ 218,005 = 0.56
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a generally stable, albeit low, level of short-term liquidity. Fluctuations are observed throughout the period, with a noticeable increase towards the end of the observed timeframe.
- Overall Trend
- The quick ratio generally remained below 0.5 for the majority of the period, indicating that the entity’s quick assets were less than its current liabilities. However, a gradual upward trend is apparent, particularly from late 2022 through early 2025. The ratio concludes the period at a level comparable to the highest observed during the analyzed timeframe.
- Initial Period (March 2022 - December 2022)
- The quick ratio began at 0.48 and experienced a decline to 0.42 by September 2022. A slight recovery to 0.45 was noted by the end of the year. This initial period suggests a potential weakening in the company’s ability to meet its immediate obligations using its most liquid assets.
- Stabilization and Improvement (March 2023 - December 2023)
- From March 2023 through December 2023, the quick ratio remained relatively stable, fluctuating between 0.43 and 0.53. The increase to 0.53 in December 2023 represents the highest value observed up to that point, suggesting improved short-term liquidity.
- Continued Strength and Final Period (March 2024 - December 2025)
- The quick ratio continued to demonstrate strength, remaining above 0.55 for several quarters, peaking at 0.56 in March and June 2024. A slight decrease to 0.48 was observed in September 2025, but a substantial increase to 0.56 in December 2025 concludes the period, indicating a solid short-term liquidity position at the end of the analysis.
- Supporting Asset and Liability Movements
- The increase in the quick ratio correlates with increases in total quick assets, particularly noticeable in the latter half of the period. While current liabilities also increased, the growth in quick assets outpaced the growth in current liabilities, contributing to the improved ratio. The most significant jump in the quick ratio coincides with the largest increase in quick assets observed between September 2025 and December 2025.
In summary, the quick ratio indicates a gradual improvement in short-term liquidity over the analyzed period, culminating in a stronger position at the end of the timeframe. The entity appears to be increasingly capable of covering its current liabilities with its most liquid assets.
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Cash Ratio
Amazon.com Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 86,810) | 66,922) | 57,741) | 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) | |||||
| Marketable securities | 36,219) | 27,275) | 35,439) | 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) | |||||
| Total cash assets | 123,029) | 94,197) | 93,180) | 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) | |||||
| Current liabilities | 218,005) | 195,196) | 186,921) | 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) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.56 | 0.48 | 0.50 | 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 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | 0.06 | 0.05 | 0.06 | 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 | |||||
| Lowe’s Cos. Inc. | 0.11 | 0.19 | 0.26 | 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 | |||||
| TJX Cos. Inc. | 0.48 | 0.39 | 0.49 | 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 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 123,029 ÷ 218,005 = 0.56
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates a generally stable pattern with some fluctuations. Initially, the ratio experienced a slight decline from 0.48 in March 2022 to 0.42 in September 2022. Subsequently, it showed improvement, peaking at 0.56 in both March and June of 2024, before experiencing a slight decrease to 0.48 in September 2025. The most significant increase occurred between December 2022 and December 2023, rising from 0.45 to 0.53, and continued into the first half of 2024.
- Total Cash Assets
- Total cash assets decreased from US$66,385 million in March 2022 to US$58,662 million in September 2022. A recovery was then observed, culminating in US$86,780 million by December 2023. This upward trend continued into 2024, reaching US$101,202 million by December 2024, before decreasing to US$94,197 million in September 2025, and then increasing significantly to US$123,029 million by December 2025.
- Current Liabilities
- Current liabilities exhibited a consistent upward trend throughout the analyzed period. Starting at US$139,508 million in March 2022, they increased to US$155,393 million by December 2022. This growth continued, reaching US$179,431 million in December 2024, and further increasing to US$218,005 million by December 2025. While there were minor quarterly fluctuations, the overall direction was consistently upward.
- Cash Ratio Trend
- The cash ratio’s stability suggests a consistent, though not dramatically strong, ability to meet short-term obligations with available cash. The increases in the ratio during 2023 and 2024, despite rising current liabilities, indicate improved liquidity. The slight dip in the ratio in September 2025, coupled with the substantial increase in cash assets by December 2025, suggests a potential strategic shift in cash management or a temporary fluctuation in short-term obligations. The ratio remained above 0.40 throughout the entire period, indicating a reasonable level of immediate liquidity.
Overall, the company demonstrates a generally healthy cash position relative to its current liabilities, with a tendency towards improvement in recent quarters. The significant increase in cash assets at the end of the analyzed period warrants further investigation to understand the underlying drivers and potential implications for future financial performance.
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