Apple Inc. (NASDAQ:AAPL)

The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuating trends over the observed period. Generally, a decline in these ratios is noted from late 2020 through much of 2022, followed by periods of stabilization and modest recovery. The most recent quarters suggest a potential stabilization, though with continued variability.

Current Ratio

The current ratio decreased from 1.16 in December 2020 to a low of 0.86 in June 2022. A slight recovery occurred through December 2022, reaching 0.94, but this was followed by fluctuations. The ratio peaked at 1.07 in December 2023 before declining to 0.82 in March 2025. This suggests a diminishing ability to cover short-term liabilities with short-term assets, although it remains relatively close to 1 for much of the period.

Quick Ratio

The quick ratio demonstrates a similar downward trend, moving from 1.02 in December 2020 to 0.70 in June 2022. It experienced a more pronounced recovery than the current ratio, peaking at 0.92 in December 2023. However, it subsequently decreased to 0.77 in September 2025. The quick ratio’s decline indicates a weakening ability to meet short-term obligations with the most liquid assets, excluding inventory.

Cash Ratio

The cash ratio consistently declined from 0.58 in December 2020 to a low of 0.31 in September 2022. While there were some increases, such as reaching 0.50 in July 2023, the ratio generally remained below the initial value. The most recent value, 0.41 in December 2025, indicates a continued reliance on sources beyond immediately available cash to cover immediate liabilities. This ratio shows the most significant and consistent decline of the three.

Overall, the observed trends suggest a gradual decrease in the company’s liquidity position from 2020 to 2022. While some recovery was observed in 2023, the ratios have exhibited volatility in the most recent quarters, indicating potential challenges in maintaining a consistently strong short-term liquidity profile. The consistent decline in the cash ratio is particularly noteworthy.

The current ratio exhibited a generally declining trend over the observed period, with some fluctuations. Initially, the ratio stood at 1.16 and remained relatively stable, fluctuating between 1.04 and 1.16 through the first five quarters. A noticeable downward trend commenced in the latter half of 2022, continuing into the first half of 2023, reaching a low of 0.82 in December 2023.

Overall Trend

From December 2020 to December 2023, the current ratio decreased from 1.16 to 0.82, indicating a weakening in the company’s ability to cover its short-term liabilities with its short-term assets. A subsequent recovery began in early 2024, with the ratio increasing to 0.97 by December 2024, but then experienced a slight decline to 0.87 in June 2025 before recovering again to 0.97 by December 2025.

Short-Term Fluctuations

Minor fluctuations were observed throughout the period. For example, a slight increase from 1.04 in September 2021 to 1.07 in December 2021 was followed by a decrease to 0.93 in March 2022. Similarly, a rise from 0.82 in December 2023 to 1.04 in March 2024 was followed by a decrease to 0.95 in June 2024.

Recent Performance

The most recent quarters show a degree of stabilization, with the current ratio hovering around 0.97 at the end of the period. This suggests a potential leveling off of the previous downward trend, although continued monitoring is warranted. The ratio increased from 0.87 in June 2025 to 0.97 in December 2025.

The observed changes in the current ratio suggest shifts in the company’s working capital management. The decline in the ratio could be attributed to factors such as increased current liabilities, decreased current assets, or a combination of both. The recent stabilization may indicate corrective measures or changes in business operations.

The quick ratio for the analyzed period demonstrates fluctuations, generally trending downwards before stabilizing and showing some recent improvement. Initial values indicate a relatively comfortable short-term liquidity position, which subsequently experiences a period of decline, followed by a partial recovery towards the end of the observed timeframe.

Overall Trend

The quick ratio begins at 1.02 and generally decreases through June 2022, reaching a low of 0.70. A slight recovery is then observed through September 2022 (0.71), followed by a further dip to 0.68 in March 2025. The ratio concludes the period with an increase to 0.85.

Initial Period (Dec 2020 - Sep 2021)

From December 2020 to September 2021, the quick ratio experiences a gradual decline from 1.02 to 0.91. While remaining above 0.90 for most of this period, the downward trajectory suggests a moderate decrease in the company’s ability to meet its immediate liabilities with its most liquid assets.

Period of Decline (Jun 2022 - Mar 2025)

A more pronounced decrease is evident from June 2022 to March 2025. The ratio falls from 0.70 to a low of 0.68. This period coincides with increasing current liabilities and relatively stable quick assets, indicating a weakening short-term liquidity position. The lowest point, 0.68, suggests the company may have faced challenges in covering its immediate obligations without relying on inventory sales.

Recent Recovery (Jun 2024 - Dec 2025)

The final portion of the analyzed period shows a positive trend. The quick ratio increases from 0.75 in June 2024 to 0.85 in December 2025. This improvement is attributable to a faster growth rate in quick assets compared to current liabilities, signaling a strengthening short-term liquidity position.

Asset and Liability Dynamics

Total quick assets fluctuate throughout the period, ranging from a low of US$90.473 million to a high of US$137.227 million. Current liabilities exhibit a more consistent upward trend, increasing from US$132.507 million to US$165.631 million. The interplay between these two components significantly influences the quick ratio’s movements.

In summary, the quick ratio demonstrates a period of weakening liquidity followed by a recent stabilization and improvement. The observed fluctuations warrant continued monitoring to ensure the company maintains a healthy short-term financial position.

The cash ratio for the analyzed period demonstrates considerable fluctuation, generally exhibiting a declining trend followed by periods of stabilization and modest recovery. Initial values indicate a relatively strong liquidity position, which gradually erodes over the observed timeframe, before showing some signs of improvement in later periods.

Overall Trend

The cash ratio begins at 0.58 in December 2020 and generally decreases through June 2022, reaching a low of 0.37. A slight recovery is then observed through December 2023, peaking at 0.55, but this is followed by another decline to 0.34 in March 2025. The final reported value for June 2025 is 0.39.

Initial Period (Dec 2020 - Sep 2021)

From December 2020 to September 2021, the cash ratio experiences a moderate decline from 0.58 to 0.50. While decreasing, the ratio remains above 0.50, suggesting a continued ability to cover current liabilities with available cash. The fluctuations during this period are relatively small.

Period of Decline (Dec 2021 - Jun 2022)

A more pronounced decrease is evident from December 2021 to June 2022, with the cash ratio falling from 0.43 to 0.37. This suggests a weakening in the company’s immediate liquidity position. The decline correlates with an increase in current liabilities and a decrease in total cash assets.

Subsequent Fluctuations (Jul 2022 - Dec 2023)

The period from July 2022 to December 2023 shows volatility. The ratio reaches a low of 0.31 in September 2022, then recovers to 0.55 in December 2023. This recovery is likely due to an increase in cash assets and a slight decrease in current liabilities. However, the recovery is not sustained.

Recent Performance (Mar 2024 - Jun 2025)

From March 2024 to June 2025, the cash ratio demonstrates a renewed downward trend, falling from 0.54 to 0.39. This indicates a potential re-emergence of liquidity concerns. The ratio remains relatively stable between 0.33 and 0.41 during this period, but does not show a clear upward trajectory.

In summary, the cash ratio exhibits a pattern of decline, recovery, and renewed decline over the analyzed period. While the ratio generally remains positive, the observed trends suggest increasing pressure on the company’s immediate liquidity position, particularly in the most recent quarters.