Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Apple Inc. pages available for free this week:
- Income Statement
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Apple Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Apple Inc., liquidity ratios
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- Current Ratio
- The current ratio demonstrates a declining trend over the analyzed periods, decreasing from 1.54 in September 2019 to 0.87 by September 2024. This consistent reduction indicates a gradual decrease in current assets relative to current liabilities, suggesting a potential weakening in short-term liquidity. Notably, the current ratio fell below 1.0 starting in September 2022, which may point to tighter liquidity conditions in recent years.
- Quick Ratio
- The quick ratio also exhibits a downward trajectory across the years, declining from 1.38 in 2019 to 0.75 in 2024. This measure excludes inventory and thereby provides a stricter assessment of liquidity. The ratio decreased markedly between 2020 and 2022, dropping below 1.0 at the end of the period in 2021, further indicating diminished capability to cover short-term liabilities with more liquid assets. Some slight recovery occurred in 2023, followed by a subsequent decrease again in 2024.
- Cash Ratio
- The cash ratio shows a pronounced decline from 0.95 in 2019 down to 0.37 in 2024. This ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents, signals a significant contraction in readily available cash resources relative to current liabilities. The downward movement is consistent across the timeline, with the lowest values recorded in the last two periods. Despite a minor improvement in 2023, the ratio declined again in 2024.
Current Ratio
Apple Inc., current ratio calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 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. | |||||||
| Current Ratio, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| Current Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current assets
- The current assets show a fluctuating but generally decreasing trend from the fiscal year ending in September 2019 through September 2021, declining from approximately $162.8 billion to about $134.8 billion. Following this period, there is a gradual recovery and increase in current assets, reaching approximately $153.0 billion by September 2024. This indicates a period of asset reduction followed by replenishment or growth in liquid or short-term assets.
- Current liabilities
- Current liabilities exhibit a continuous and marked upward trend over the entire period. Starting at around $105.7 billion in September 2019, current liabilities rose steadily each year to reach approximately $176.4 billion by September 2024. This significant increase suggests growing short-term financial obligations or operational costs that may be affecting the company's liquidity position.
- Current ratio
- The current ratio reflects the company's ability to cover its short-term obligations with short-term assets, and it shows a notable decline from 1.54 in September 2019 to 0.87 in September 2024. The ratio fell below the critical threshold of 1.0 starting in September 2022, indicating that current liabilities exceed current assets from that point onward. This declining liquidity ratio suggests potential challenges in meeting short-term liabilities and may warrant attention for liquidity management.
Quick Ratio
Apple Inc., quick ratio calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | |||||||
| Quick Ratio, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| Quick Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- Total quick assets demonstrated a declining trend from 2019 to 2022, decreasing from approximately 146.4 billion US dollars in 2019 to around 109.2 billion US dollars in 2022. This trend reversed starting in 2023, with quick assets increasing to about 122.5 billion and further to approximately 131.4 billion in 2024.
- Current Liabilities
- Current liabilities showed a consistent upward trend over the entire period. Starting from roughly 105.7 billion US dollars in 2019, liabilities increased steadily each year, reaching about 176.4 billion US dollars by 2024. Notably, there was a significant increase between 2021 and 2022.
- Quick Ratio
- The quick ratio, which measures liquidity by comparing quick assets to current liabilities, declined from 1.38 in 2019 to a low of 0.71 in 2022, indicating a weakening short-term liquidity position. Although there was a slight recovery to 0.84 in 2023, the ratio decreased again to 0.75 in 2024. This pattern suggests that despite the increase in quick assets in recent years, liabilities have grown at a faster rate, maintaining pressure on liquidity.
- Summary of Financial Position
- The simultaneous decrease in quick assets and increase in current liabilities between 2019 and 2022 contributed to the sharp decline in the quick ratio, reflecting deteriorating liquidity. The partial recovery in quick assets from 2023 onward improved the situation somewhat; however, the continuing rise in current liabilities has sustained a quick ratio below 1. This indicates that, as of 2024, quick assets are insufficient to cover current liabilities fully, suggesting potential short-term solvency concerns.
Cash Ratio
Apple Inc., cash ratio calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 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. | |||||||
| Cash Ratio, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| Cash Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a declining trend from 2019 through 2022, starting at 100,557 million US dollars in 2019 and decreasing steadily to reach a low of 48,304 million US dollars in 2022. However, there is a rebound observed in 2023 and 2024, with cash assets increasing to 61,555 million US dollars and further to 65,171 million US dollars, respectively. Overall, while the cash assets have not returned to the 2019 peak, the recent upward movement suggests an improvement in liquidity position after the decline.
- Current Liabilities
- Current liabilities show an upward trajectory over the period analyzed. Starting at 105,718 million US dollars in 2019, liabilities remain relatively stable into 2020 but increase significantly from 2021 onward, reaching 125,481 million US dollars. This upward trend continues more sharply in 2022 and 2023, peaking at 176,392 million US dollars in 2024. This consistent increase suggests growing short-term obligations, which could exert pressure on working capital management.
- Cash Ratio
- The cash ratio reflects the relationship between cash and current liabilities and demonstrates a notable declining trend. In 2019, the ratio was 0.95, indicating nearly equivalent cash assets to current liabilities. This ratio decreases progressively over the years—with minor fluctuations—falling to a low of 0.31 in 2022. Although there is a slight recovery to 0.42 in 2023, it dips again to 0.37 in 2024. This overall decline in the cash ratio signals a reduced ability to cover short-term liabilities solely with cash, highlighting a tightening liquidity position relative to current liabilities.
- Summary and Insights
- Across the analyzed periods, the data reveal a pattern of decreasing cash assets accompanied by a steady increase in current liabilities, resulting in a deteriorating cash ratio. The initial decline in cash reserves paired with rising liabilities suggests increased financial commitments that may challenge liquidity management. Despite some recovery in cash assets in recent years, the cash ratio remains significantly lower than in 2019, indicating that the company’s capacity to readily settle short-term obligations with cash alone has weakened. This dynamic warrants attention to ensure the adequacy of liquidity buffers and the management of short-term debt obligations moving forward.