Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Diageo PLC, liquidity ratios
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Diageo PLC current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Diageo PLC quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Diageo PLC cash ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Current Ratio
Diageo PLC, current ratio calculation, comparison to benchmarks
| Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
| Current assets | 12,614) | 14,243) | 11,795) | 11,126) | 10,700) | 10,032) | |
| Current liabilities | 8,193) | 9,188) | 7,780) | 7,637) | 6,070) | 6,446) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.54 | 1.55 | 1.52 | 1.46 | 1.76 | 1.56 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Altria Group Inc. | — | — | — | — | — | — | |
| Coca-Cola Co. | — | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,614 ÷ 8,193 = 1.54
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Diageo PLC current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
Quick Ratio
Diageo PLC, quick ratio calculation, comparison to benchmarks
| Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
| Trade receivables | 3,385) | 3,409) | 2,844) | 2,332) | 2,301) | 2,535) | |
| Other receivables | 483) | 399) | 268) | 420) | 559) | 404) | |
| Cash and cash equivalents | 1,050) | 2,937) | 1,750) | 2,461) | 2,236) | 1,478) | |
| Total quick assets | 4,918) | 6,745) | 4,863) | 5,213) | 5,096) | 4,417) | |
| Current liabilities | 8,193) | 9,188) | 7,780) | 7,637) | 6,070) | 6,446) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.60 | 0.73 | 0.63 | 0.68 | 0.84 | 0.69 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Altria Group Inc. | — | — | — | — | — | — | |
| Coca-Cola Co. | — | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,918 ÷ 8,193 = 0.60
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Diageo PLC quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Cash Ratio
Diageo PLC, cash ratio calculation, comparison to benchmarks
| Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
| Cash and cash equivalents | 1,050) | 2,937) | 1,750) | 2,461) | 2,236) | 1,478) | |
| Total cash assets | 1,050) | 2,937) | 1,750) | 2,461) | 2,236) | 1,478) | |
| Current liabilities | 8,193) | 9,188) | 7,780) | 7,637) | 6,070) | 6,446) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.13 | 0.32 | 0.22 | 0.32 | 0.37 | 0.23 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Altria Group Inc. | — | — | — | — | — | — | |
| Coca-Cola Co. | — | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,050 ÷ 8,193 = 0.13
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Diageo PLC cash ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |