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Apple (NAS:AAPL) Quick Ratio

: 0.88 (As of Mar. 2023)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Apple's quick ratio for the quarter that ended in Mar. 2023 was 0.88.

Apple has a quick ratio of 0.88. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Apple's Quick Ratio or its related term are showing as below:

AAPL' s Quick Ratio Range Over the Past 10 Years
Min: 0.82   Med: 1.89   Max: 3.38
Current: 0.88

During the past 13 years, Apple's highest Quick Ratio was 3.38. The lowest was 0.82. And the median was 1.89.

AAPL's Quick Ratio is ranked worse than
78.13% of 2437 companies
in the Hardware industry
Industry Median: 1.40 vs AAPL: 0.88

Apple Quick Ratio Historical Data

The historical data trend for Apple's Quick Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Apple Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.10 1.50 1.33 1.02 0.85

Apple Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.82 0.85 0.89 0.88

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Apple Quick Ratio Distribution

For the Hardware industry and Technology sector, Apple's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Apple's Quick Ratio falls in comparison to its industry or sector. The grey bar indicates the Quick Ratio's extreme value range as defined by GuruFocus.



Apple Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Apple's Quick Ratio for the fiscal year that ended in Sep. 2022 is calculated as

Quick Ratio (A: Sep. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(135405-4946)/153982
=0.85

Apple's Quick Ratio for the quarter that ended in Mar. 2023 is calculated as

Quick Ratio (Q: Mar. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(112913-7482)/120075
=0.88

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Apple  (NAS:AAPL) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Apple Quick Ratio Related Terms

Thank you for viewing the detailed overview of Apple's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Apple (NAS:AAPL) Business Description

Apple logo
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods. The iPhone makes up most of Apple's total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple's products include internally developed software and semiconductors, and the firm is well known for its integration of hardware, software, semiconductors, and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers. The company generates roughly 40% of its revenue from the Americas, with the remainder earned internationally.
Executives
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Monica C Lozano director
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Robert A Iger director C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1062
Andrea Jung director C/O APPLE INC, ONE APPLE PARK WAY, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022
James A Bell director C/O THE DOW CHEMICAL COMPANY, 2211 H.H. DOW WAY, MIDLAND MI 48674
Albert Jr Gore director C/O APPLE INC, 1 INFINITE LOOP, CUPERTINO CA 95014
Ronald D Sugar director 10877 WILSHIRE BLVD., SUITE 1650, LOS ANGELES CA 900274
Katherine L. Adams officer: SVP, General Counsel APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014
Luca Maestri officer: Senior Vice President, CFO 1 INFINITE LOOP, CUPERTINO CA 95014
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Eduardo H Cue officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014

Apple (NAS:AAPL) Headlines