Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Apple Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-K (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28).
- Current Ratio
- The current ratio exhibits a downward trend from late 2019 through 2025, starting at 1.6 and generally declining with some fluctuations. Notably, the ratio decreases significantly from above 1.5 in the early periods to below 1.0 in multiple quarters between 2022 and 2025, reflecting a diminishing short-term liquidity position. There are intermittent rebounds, such as modest increases near the end of 2023 and early 2024, but the overall pattern indicates weakening ability to cover current liabilities with current assets over the observed timeframe.
- Quick Ratio
- The quick ratio follows a similar downward trajectory, beginning at 1.44 in late 2019 and declining steadily to values below 1.0 after early 2021. It continues to experience modest fluctuations and occasional small recoveries, yet fails to return to initial levels by 2025. This decline points to a reduced capacity to meet short-term obligations without relying on inventory, suggesting tighter liquidity conditions in more liquid assets excluding inventories.
- Cash Ratio
- The cash ratio shows the most pronounced decline among the liquidity ratios. Starting at a healthy 1.05 in December 2019, the ratio steadily decreases over the periods, reaching lows around 0.31 to 0.39 in the years following 2022. Although there are minor increases at certain points, a sustained downward trend is evident. This indicates a diminishing proportion of cash and cash equivalents relative to current liabilities, which may raise concerns about immediate liquidity and the company's ability to cover short-term liabilities using only its most liquid assets.
Current Ratio
Apple Inc., current ratio calculation (quarterly data)
| Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-K (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
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Current assets showed a fluctuating trend over the observed periods. Initially, the value decreased from 163,231 million USD at the end of 2019 to 114,423 million USD by mid-2021. After this decline, current assets generally increased again, peaking at 153,566 million USD in late 2023, before declining once more toward the end of the data set, reaching 122,491 million USD by mid-2025.
- Current Liabilities
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Current liabilities exhibited an overall increasing trend with some fluctuations. The amounts rose from 102,161 million USD at the end of 2019 to a high of 176,392 million USD by late 2024. Periods of noticeable increments were observed especially after late 2020, with several peaks and slight declines but maintaining generally higher levels relative to the beginning of the period.
- Current Ratio
-
The current ratio displayed a declining trend from 1.6 at the end of 2019 to values below 1.0, indicating a shrinking margin of current assets over current liabilities. From early 2022 onwards, the ratio consistently remained below 1.0, hitting a low of 0.82 in mid-2025. Minor recoveries were noted intermittently, for example around late 2023, but the overall pattern points to decreased short-term liquidity and potential pressure on the company's ability to cover short-term obligations with current assets.
- Summary
-
The analysis reveals a concerning liquidity trend. While current assets fluctuated, current liabilities increased more significantly, resulting in a persistently declining current ratio below the generally accepted liquidity benchmark of 1.0 during the latter part of the timeframe. This suggests a potential risk in meeting short-term liabilities with available current assets. The company may want to focus on managing current liabilities or boosting current assets to improve liquidity ratios in the future.
Quick Ratio
Apple Inc., quick ratio calculation (quarterly data)
| Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||||
| Current marketable securities | ||||||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||||||
| Vendor non-trade receivables | ||||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-K (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- Total quick assets exhibit significant fluctuations over the observed periods. Initially, they start at a higher level around $147 billion at the end of 2019, followed by a decline through early to mid-2021, reaching a low point near $95 billion. From late 2021 through 2023, there is a moderate recovery with values generally hovering around the $100 billion to $130 billion range. However, towards the most recent periods, there is a noticeable decline again, with assets dropping below $110 billion, indicating variability but an overall downward pressure relative to the early periods.
- Trend in Current Liabilities
- Current liabilities show a general upward trend over the reported quarters. Starting at approximately $102 billion at the end of 2019, the liabilities largely increase with intermittent periods of decline. The peak liabilities occur near $176 billion around late 2024, followed by a slight decrease but remaining at elevated levels above $140 billion in the most recent quarters. This growth trend in liabilities suggests increasing short-term obligations over the duration.
- Analysis of the Quick Ratio
- The quick ratio declines steadily from 1.44 at the end of 2019 to a low of 0.68 by mid-2025. This ratio remains below 1.0 for the majority of the periods after early 2020, implying that quick assets are insufficient to cover current liabilities. There is a modest recovery phase around 2022-2023 where the ratio improves slightly from about 0.7 to 0.92, but this is followed by a renewed decline. The persistent ratio below unity from 2020 onward reflects a weakening short-term liquidity position.
- Overall Financial Insights
- The data reflects pressure on liquidity over time, especially when considering the continual growth in current liabilities against relatively stagnant or declining quick assets. The decreasing quick ratio highlights potential challenges in meeting short-term debts without relying on inventory or additional financing. Volatility in quick assets may indicate asset management or operational influences impacting liquid assets availability. The firm appears to experience tightening liquidity conditions despite fluctuations in asset levels, which may require attention to working capital management and liquidity strategies.
Cash Ratio
Apple Inc., cash ratio calculation (quarterly data)
| Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||||
| Current marketable securities | ||||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-K (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets exhibit a general declining trend from the end of 2019 through mid-2022, dropping from approximately $107 billion to around $48 billion. Following this trough, cash assets show some variability but generally recover moderately, peaking near $73 billion in late 2023 before declining again towards $55 billion by mid-2025.
- Current Liabilities Trend
- Current liabilities demonstrate an overall upward trajectory over the period, starting near $102 billion at the end of 2019 and reaching their highest point of approximately $176 billion by late 2024. Fluctuations are visible, but the prevailing pattern indicates increasing short-term obligations, particularly steep increases from 2020 to 2022 and around 2024.
- Cash Ratio Analysis
- The cash ratio, representing the proportion of cash assets to current liabilities, falls sharply in the early years, dropping from slightly above 1.0 at the end of 2019 to about 0.31 by late 2022. This decline reflects both diminishing cash reserves and rising short-term liabilities. A modest recovery in this ratio occurs during 2023, rising to approximately 0.55, before another decrease ensues, ending near 0.39 in mid-2025. Throughout the timeframe, the ratio remains below 1.0, indicating that cash assets alone would not fully cover current liabilities.
- Overall Insights
- The data suggests a tightening liquidity position over the observed period, with decreasing cash assets and increasing current liabilities reducing the immediate liquidity cushion. The sustained cash ratio below 1.0 signals potential reliance on other liquid assets or sources of financing to meet short-term obligations. The fluctuations in cash assets and ratio in 2023 may reflect strategic cash management or operational factors temporarily improving liquidity, though the downward trend resumes thereafter.