Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
EMC Corp., liquidity ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.34 | 1.46 | 1.18 | 1.12 | |
| Quick ratio | 1.03 | 1.09 | 1.23 | 0.93 | 0.89 | |
| Cash ratio | 0.72 | 0.71 | 0.90 | 0.60 | 0.61 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | EMC Corp. current ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | EMC Corp. quick ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | EMC Corp. cash ratio deteriorated from 2013 to 2014 but then slightly improved from 2014 to 2015. |
Current Ratio
EMC Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 15,063) | 15,733) | 17,278) | 12,209) | 11,583) | |
| Current liabilities | 12,885) | 11,710) | 11,799) | 10,304) | 10,376) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.17 | 1.34 | 1.46 | 1.18 | 1.12 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,063 ÷ 12,885 = 1.17
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. | EMC Corp. current ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Quick Ratio
EMC Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,549) | 6,343) | 7,891) | 4,754) | 4,531) | |
| Short-term investments | 2,726) | 1,978) | 2,773) | 1,413) | 1,787) | |
| Accounts and notes receivable, less allowance for doubtful accounts | 3,977) | 4,413) | 3,861) | 3,433) | 2,937) | |
| Total quick assets | 13,252) | 12,734) | 14,525) | 9,601) | 9,256) | |
| Current liabilities | 12,885) | 11,710) | 11,799) | 10,304) | 10,376) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.03 | 1.09 | 1.23 | 0.93 | 0.89 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 13,252 ÷ 12,885 = 1.03
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. | EMC Corp. quick ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Cash Ratio
EMC Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,549) | 6,343) | 7,891) | 4,754) | 4,531) | |
| Short-term investments | 2,726) | 1,978) | 2,773) | 1,413) | 1,787) | |
| Total cash assets | 9,275) | 8,321) | 10,664) | 6,167) | 6,318) | |
| Current liabilities | 12,885) | 11,710) | 11,799) | 10,304) | 10,376) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.72 | 0.71 | 0.90 | 0.60 | 0.61 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,275 ÷ 12,885 = 0.72
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. | EMC Corp. cash ratio deteriorated from 2013 to 2014 but then slightly improved from 2014 to 2015. |