AMZN Current Ratio Analysis

Amazon’s current ratio of 1.18x means the company has $1.18 in current assets (like cash and inventory) for every $1 of current liabilities due within a year, indicating it can just barely cover short-term obligations.

This falls below the sector median of 1.44x for Consumer Cyclical peers, placing Amazon in the 32nd percentile — meaning 68% of peers have a higher (stronger) ratio. The year-over-year and quarter-over-quarter changes are both reported as N/A, and only a single historical value is provided, so no trend direction can be assessed from the available data. With a below-median level but no trend information, the combination suggests a current liquidity position that is weaker than most peers, though the lack of change over time means risk has neither increased nor decreased recently. This metric moderately contradicts the overall BULLISH verdict, as lower liquidity relative to the sector introduces a short-term financial risk that the bullish outlook does not fully reflect. However, Amazon’s strong cash flow generation and market position often mitigate this concern in practice.

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