Question
I am looking into quick ratio for Amazon. I calculated Amazon's quick ratio as 0.9 for 6/2020 and .08 for 3/2020. Am I correct in
I am looking into quick ratio for Amazon. I calculated Amazon's quick ratio as 0.9 for 6/2020 and .08 for 3/2020. Am I correct in assuming that based on these calculations that Amazon would not be able to cover it's liabilities?
3/2020 Cash & ST investments: 49.292B, Acct receivable 14B, current liabilities 79.711B
6/2020 Cast & ST invest: 71.391B, Acct Rec: 15.3B, current liabilities: 93.896B
However I did a calculation current ratio and that came out to 1.2 for 6/2020 and 1.1 for 3/2020. Doesn't this mean that Amazon is able to cover it's liabilities?
3/2020: Current assets 85.985B, current liabilities 79.711B
6/2020: Current assets 110.9B, current liabilities 93.896B
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Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
