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Amazon.com Quick Ratio

: 0.87 (As of Sep. 2021)
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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. Amazon.com's quick ratio for the quarter that ended in Sep. 2021 was 0.87.

Amazon.com has a quick ratio of 0.87. It indicates that the company cannot currently fully pay back its current liabilities.

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

NAS:AMZN' s Quick Ratio Range Over the Past 10 Years
Min: 0.54   Med: 1.01   Max: 7.34
Current: 0.87

0.54
7.34

During the past 13 years, Amazon.com's highest Quick Ratio was 7.34. The lowest was 0.54. And the median was 1.01.

NAS:AMZN's Quick Ratio is ranked lower than
52% of the 1115 Companies
in the Retail - Cyclical industry.

( Industry Median: 0.91 vs. NAS:AMZN: 0.87 )

Amazon.com Quick Ratio Historical Data

The historical data trend for Amazon.com'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.

Amazon.com Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.78 0.76 0.85 0.86 0.86

Amazon.com Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 0.86 0.85 0.99 0.87

Competitive Comparison

For the Internet Retail subindustry, Amazon.com'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.

   

Amazon.com Quick Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Amazon.com's Quick Ratio falls into.



Amazon.com 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.

Amazon.com's Quick Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(132733-23795)/126385
=0.86

Amazon.com's Quick Ratio for the quarter that ended in Sep. 2021 is calculated as

Quick Ratio (Q: Sep. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(138531-30933)/123994
=0.87

* 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.


Amazon.com  (NAS:AMZN) 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.


Amazon.com Quick Ratio Related Terms

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


Amazon.com Business Description

Amazon.com logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
410 Terry Avenue North, Seattle, WA, USA, 98109-5210
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020. Retail related revenue represented approximately 83% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (12%), and advertising services and cobranded credit cards (6%). International segments constituted 27% of Amazon's non-AWS sales in 20202, led by Germany, the United Kingdom, and Japan.
Executives
Wilke Jeffrey A officer: CEO Worldwide Consumer PO BOX 81226 SEATTLE WA 98108-1226
Nooyi Indra K director 700 ANDERSON HILL RD PURCHASE NY 10577
Jassy Andrew R officer: CEO Amazon Web Services PO BOX 81226 SEATTLE WA 98108-1226
Reynolds Shelley officer: Vice President PO BOX 81226 SEATTLE WA 98108
Zapolsky David officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Olsavsky Brian T officer: Senior Vice President and CFO PO BOX 81226 SEATTLE WA 98108
Mcgrath Judith A director PO BOX 81226 SEATTLE WA 98108
Alexander Keith Brian director P.O. BOX 81226 SEATTLE WA 98108-1226
Bezos Jeffrey P director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226 PO BOX 81226 SEATTLE WA 98108-1226
Stonesifer Patricia Q director PO BOX 81226 SEATTLE WA 98108-1226
Rubinstein Jonathan director APPLE COMPUTER INC 1 INFINITE LOOP CUPERTINO CA 95014
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Weeks Wendell P director ONE RIVERFRONT PLZ CORNING NY 14831
Blackburn Jeffrey M officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108-1226
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202

Amazon.com Headlines

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