Quick Answer: What Is Amazon’S Quick Ratio?

What is Amazon’s current ratio?

1.1xAmazon.com’s latest twelve months current ratio is 1.1x.

Amazon.com’s current ratio for fiscal years ending December 2016 to 2020 averaged 1.1x.

Amazon.com’s operated at median current ratio of 1.1x from fiscal years ending December 2016 to 2020..

What is a good quick ratio?

A result of 1 is considered to be the normal quick ratio. … A company that has a quick ratio of less than 1 may not be able to fully pay off its current liabilities in the short term, while a company having a quick ratio higher than 1 can instantly get rid of its current liabilities.

What is Walmart’s quick ratio?

0.2Unfortunately, Wal-Mart has a quick ratio of 0.2, which means that excluding inventories, Wal-Mart only has $0.20 for every $1 in liabilities falling due within 12 months.

How is quick ratio calculated?

There are two ways to calculate the quick ratio: QR = (Current Assets – Inventories – Prepaids) / Current Liabilities. QR = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities.

Does Walmart have a lot of debt?

According to the Walmart’s most recent financial statement as reported on June 3, 2020, total debt is at $58.03 billion, with $47.48 billion in long-term debt and $10.55 billion in current debt. Adjusting for $14.93 billion in cash-equivalents, the company has a net debt of $43.10 billion.

Why high current ratio is bad?

If a company has a high ratio (anywhere above 1) then they are capable of paying their short-term obligations. The higher the ratio, the more capable the company. … This indicates poor financial health for a company, but does not necessarily mean they will unable to succeed.

Can a current ratio be negative?

If a current ratio is less than 1, the current liabilities exceed the current assets and the working capital is negative. … Conversely, when there is too little working capital, less money is devoted to daily operations—a warning sign that the company is being too aggressive with its finances.

What is Walmart’s debt ratio?

0.22Considering Walmart’s $237.38 billion in total assets, the debt-ratio is at 0.22. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets.

What happens if quick ratio is too high?

If the current ratio is too high, the company may be inefficiently using its current assets or its short-term financing facilities. … Low values for the current or quick ratios (values less than 1) indicate that a firm may have difficulty meeting current obligations.

What if quick ratio is less than 1?

It is defined as the ratio between quickly available or liquid assets and current liabilities. … A company with a quick ratio of less than 1 cannot currently fully pay back its current liabilities.

What is a good debt to equity ratio?

The optimal debt-to-equity ratio will tend to vary widely by industry, but the general consensus is that it should not be above a level of 2.0. While some very large companies in fixed asset-heavy industries (such as mining or manufacturing) may have ratios higher than 2, these are the exception rather than the rule.

Is 4 a good current ratio?

So a current ratio of 4 would mean that the company has 4 times more current assets than current liabilities. A higher current ratio is always more favorable than a lower current ratio because it shows the company can more easily make current debt payments. … In other words, the company is losing money.

What is Tesla’s current ratio?

Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. Tesla current ratio for the three months ending December 31, 2020 was 1.88.

What is a good ROE for retail?

ROEs of 15–20% are generally considered good. ROE is also a factor in stock valuation, in association with other financial ratios.

What is a good quick ratio for retail?

Retailers should strive for ratios of greater than 1:1. The acid test is a good indicator for retailers who want to judge their short-term survivability. Too high of a ratio indicates you might be able to put some liquid assets to better use or incorporate them into a crisis management strategy.

What is a good current ratio?

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn’t have enough liquid assets to cover its short-term liabilities.

Which is better current ratio or quick ratio?

The current ratio is a liquidity ratio that’s used by investors to determine whether a company is capable of paying off all of its current liabilities using its current assets….Difference between Current Ratio and Quick Ratio.Current ratioQuick ratioWhile anything that’s more than 1 is ideal, a current ratio of 2:1 is preferable.A quick ratio of 1:1 is preferable.5 more rows•Oct 31, 2020

How do you interpret current ratio?

Interpretation of Current RatiosIf Current Assets > Current Liabilities, then Ratio is greater than 1.0 -> a desirable situation to be in.If Current Assets = Current Liabilities, then Ratio is equal to 1.0 -> Current Assets are just enough to pay down the short term obligations.More items…

What is a bad quick ratio?

If your business has a quick ratio of 1.0 or greater, that typically means your business is healthy and can pay its liabilities. The greater the number, the better off your business is. A high quick ratio means your business is financially secure in the short-term future.

What does a current ratio of 3 mean?

The current ratio is a popular metric used across the industry to assess a company’s short-term liquidity with respect to its available assets and pending liabilities. … A ratio over 3 may indicate that the company is not using its current assets efficiently or is not managing its working capital properly.