Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Amazon.com Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.05 | 1.06 | 1.05 | 0.94 | 1.14 | |
| Quick ratio | 0.84 | 0.84 | 0.81 | 0.69 | 0.86 | |
| Cash ratio | 0.56 | 0.56 | 0.53 | 0.45 | 0.68 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position, as indicated by the assessed ratios, demonstrates a generally stable, though fluctuating, profile over the five-year period. A slight overall improvement is observed from 2022 to 2025, following a decline in 2022. The company maintains sufficient, but not exceptionally high, levels of liquid assets relative to its current obligations.
- Current Ratio
- The current ratio experienced a decrease from 1.14 in 2021 to 0.94 in 2022, suggesting a reduced ability to cover short-term liabilities with short-term assets. However, the ratio recovered to 1.05 in 2023 and remained relatively stable at 1.06 and 1.05 in 2024 and 2025, respectively. This indicates a stabilization of the company’s short-term solvency.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, declining from 0.86 in 2021 to 0.69 in 2022. This decrease suggests a weakening in the ability to meet short-term obligations with the most liquid assets. A subsequent increase to 0.81 in 2023, followed by stability at 0.84 in both 2024 and 2025, indicates an improvement and then stabilization of the company’s immediate liquidity position.
- Cash Ratio
- The cash ratio exhibited a decline from 0.68 in 2021 to 0.45 in 2022, representing a reduction in the proportion of current assets held as cash. The ratio then showed modest improvement, rising to 0.53 in 2023 and stabilizing at 0.56 in both 2024 and 2025. This suggests a consistent, though not substantial, capacity to cover immediate liabilities with available cash.
Overall, the trends suggest a temporary weakening of liquidity in 2022, followed by a period of recovery and stabilization through 2025. The ratios consistently indicate the presence of liquid assets, but not at levels that would be considered exceptionally strong. The relative consistency of the ratios from 2023 to 2025 suggests a more predictable liquidity profile during that period.
Current Ratio
Amazon.com Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 229,083) | 190,867) | 172,351) | 146,791) | 161,580) | |
| Current liabilities | 218,005) | 179,431) | 164,917) | 155,393) | 142,266) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.05 | 1.06 | 1.05 | 0.94 | 1.14 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Home Depot Inc. | 1.11 | 1.35 | 1.41 | 1.01 | 1.23 | |
| Lowe’s Cos. Inc. | 1.09 | 1.23 | 1.10 | 1.02 | 1.19 | |
| TJX Cos. Inc. | 1.18 | 1.21 | 1.21 | 1.27 | 1.46 | |
| Current Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 1.06 | 1.11 | 1.10 | 0.98 | 1.17 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.18 | 1.22 | 1.20 | 1.15 | 1.25 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 229,083 ÷ 218,005 = 1.05
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and showing a slight improvement. A review of the underlying components, current assets and current liabilities, provides further insight into these movements.
- Current Ratio Trend
- The current ratio began at 1.14 in 2021, indicating the company possessed $1.14 of current assets for every $1.00 of current liabilities. A decline was observed in 2022, with the ratio falling to 0.94, suggesting a potential weakening in short-term liquidity. The ratio then recovered to 1.05 in 2023 and further increased to 1.06 in 2024. The ratio remained relatively stable at 1.05 in 2025.
- Underlying Component Analysis
- Current assets decreased from $161,580 million in 2021 to $146,791 million in 2022, contributing to the initial decline in the current ratio. Subsequently, current assets increased to $172,351 million in 2023, $190,867 million in 2024, and $229,083 million in 2025. Current liabilities also increased over the period, moving from $142,266 million in 2021 to $155,393 million in 2022, $164,917 million in 2023, $179,431 million in 2024, and $218,005 million in 2025. The increases in both current assets and current liabilities appear to have moderated the ratio’s volatility after 2022.
The stabilization of the current ratio around 1.05 in the later years suggests a more balanced short-term financial position. While the ratio dipped below 1.0 in 2022, indicating potential short-term solvency concerns, the subsequent increases in current assets relative to current liabilities have mitigated this risk. Continued monitoring of these trends is recommended.
Quick Ratio
Amazon.com Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 86,810) | 78,779) | 73,387) | 53,888) | 36,220) | |
| Marketable securities | 36,219) | 22,423) | 13,393) | 16,138) | 59,829) | |
| Customer receivables, net | 40,400) | 34,300) | 34,100) | 26,600) | 20,200) | |
| Vendor receivables, net | 15,900) | 11,600) | 8,500) | 6,900) | 5,300) | |
| Other receivables, net | 4,500) | 3,400) | 4,300) | 4,400) | 1,000) | |
| Total quick assets | 183,829) | 150,502) | 133,680) | 107,926) | 122,549) | |
| Current liabilities | 218,005) | 179,431) | 164,917) | 155,393) | 142,266) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.84 | 0.84 | 0.81 | 0.69 | 0.86 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Home Depot Inc. | 0.23 | 0.32 | 0.26 | 0.20 | 0.47 | |
| Lowe’s Cos. Inc. | 0.11 | 0.08 | 0.09 | 0.07 | 0.28 | |
| TJX Cos. Inc. | 0.53 | 0.59 | 0.59 | 0.64 | 1.01 | |
| Quick Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.72 | 0.73 | 0.68 | 0.57 | 0.77 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.87 | 0.91 | 0.86 | 0.81 | 0.93 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 183,829 ÷ 218,005 = 0.84
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the five-year period. Initially, a decrease was observed, followed by a period of stabilization and modest growth.
- Quick Ratio Trend
- The quick ratio decreased from 0.86 in 2021 to 0.69 in 2022, indicating a weakening in the company’s ability to meet its short-term obligations with its most liquid assets. A subsequent recovery was noted in 2023, with the ratio rising to 0.81. This upward trend continued into 2024 and 2025, reaching 0.84 in both years, suggesting an improved short-term liquidity position.
- Asset and Liability Dynamics
- Total quick assets decreased between 2021 and 2022, from US$122,549 million to US$107,926 million, contributing to the initial decline in the quick ratio. However, quick assets increased in subsequent years, reaching US$183,829 million by 2025. Current liabilities consistently increased throughout the period, rising from US$142,266 million in 2021 to US$218,005 million in 2025. The stabilization of the quick ratio in the later years suggests that the growth in quick assets kept pace with the increase in current liabilities.
The observed stabilization in the quick ratio towards the end of the period indicates a potential improvement in the company’s capacity to cover its immediate liabilities, despite the overall increase in the absolute value of those liabilities. The initial decline followed by recovery warrants further investigation into the composition of quick assets and the nature of current liabilities.
Cash Ratio
Amazon.com Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 86,810) | 78,779) | 73,387) | 53,888) | 36,220) | |
| Marketable securities | 36,219) | 22,423) | 13,393) | 16,138) | 59,829) | |
| Total cash assets | 123,029) | 101,202) | 86,780) | 70,026) | 96,049) | |
| Current liabilities | 218,005) | 179,431) | 164,917) | 155,393) | 142,266) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.56 | 0.56 | 0.53 | 0.45 | 0.68 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Home Depot Inc. | 0.06 | 0.17 | 0.12 | 0.08 | 0.34 | |
| Lowe’s Cos. Inc. | 0.11 | 0.08 | 0.09 | 0.07 | 0.28 | |
| TJX Cos. Inc. | 0.48 | 0.54 | 0.53 | 0.59 | 0.97 | |
| Cash Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.48 | 0.49 | 0.44 | 0.37 | 0.61 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.50 | 0.52 | 0.48 | 0.47 | 0.64 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 123,029 ÷ 218,005 = 0.56
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing in the latter years of the observed timeframe. Total cash assets and current liabilities both increased throughout the period, but at differing rates, influencing the ratio’s behavior.
- Cash Ratio Trend
- The cash ratio began at 0.68 in 2021, representing a relatively strong ability to meet current obligations with immediately available cash. A significant decline was observed in 2022, with the ratio falling to 0.45. This indicates a reduced capacity to cover short-term liabilities with cash holdings. The ratio experienced a partial recovery in 2023, rising to 0.53, and continued to increase modestly to 0.56 in both 2024 and 2025, suggesting a stabilization of the company’s immediate liquidity position.
- Total Cash Assets
- Total cash assets decreased from US$96,049 million in 2021 to US$70,026 million in 2022. However, the company subsequently increased its cash holdings, reaching US$86,780 million in 2023, US$101,202 million in 2024, and US$123,029 million in 2025. This demonstrates a recovery and subsequent growth in readily available funds.
- Current Liabilities
- Current liabilities consistently increased throughout the period, moving from US$142,266 million in 2021 to US$218,005 million in 2025. This upward trend in short-term obligations contributed to the initial decline in the cash ratio, as liabilities grew at a faster pace than cash assets in 2022. The continued increase in current liabilities, albeit at a moderated rate relative to the cash asset growth in later years, maintained pressure on the cash ratio.
The stabilization of the cash ratio at 0.56 in the final two years suggests a balancing of cash asset growth and current liability increases. While the ratio did not return to its initial level, the consistent value indicates a more predictable short-term liquidity profile.