Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Adobe Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
The analysis of liquidity ratios over the periods reveals distinct trends in the company's short-term financial health and ability to cover obligations.
- Current Ratio
- The current ratio displayed moderate fluctuations, generally staying above 1.0, indicating that current assets consistently exceeded current liabilities. Initially, there was a rising trend from 1.23 to a peak near 1.48 in late 2020, suggesting improving liquidity. However, from early 2022 onward, the ratio declined somewhat, with values hovering around or slightly above 1.0. This indicates that while the company maintained a generally adequate buffer, the margin of safety against short-term liabilities has slightly diminished in recent periods.
- Quick Ratio
- The quick ratio followed a broadly similar pattern to the current ratio but remained slightly lower as expected, reflecting the exclusion of inventory from liquid assets. It showed strength up to the end of 2021, exceeding 1.2 at times, which reflects solid short-term liquidity without depending on inventory sales. From 2022 on, the quick ratio often dipped below 1.0, implying slightly tighter liquidity conditions when only the most liquid assets are considered. This signals a cautious perspective regarding the immediate availability of liquid assets to cover current liabilities.
- Cash Ratio
- The cash ratio, representing the most conservative liquidity measure focusing solely on cash and cash equivalents, was the lowest among the three ratios throughout the periods analyzed. It showed a rising trend until late 2020, peaking near 1.09, but then declined and remained below 1.0 from 2021 onwards, frequently dipping below 0.7 in more recent quarters. This suggests reduced cash reserves relative to current liabilities, highlighting a potential vulnerability in meeting obligations using only cash resources without relying on receivables or inventory liquidation.
Overall, the liquidity ratios indicate that the company maintained adequate short-term financial stability through the earlier periods analyzed. There was a noticeable easing in liquidity from 2022 onwards, particularly in the more stringent measures, which suggests an increased reliance on less liquid current assets or slightly higher short-term liabilities relative to liquid resources. Maintaining ratios close to or above 1.0 across these measures points to ongoing capability to meet short-term commitments but warrants monitoring to ensure that liquidity does not become constrained under more conservative assessments.
Current Ratio
Adobe Inc., current ratio calculation (quarterly data)
| Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 2023 | Mar 3, 2023 | Dec 2, 2022 | Sep 2, 2022 | Jun 3, 2022 | Mar 4, 2022 | Dec 3, 2021 | Sep 3, 2021 | Jun 4, 2021 | Mar 5, 2021 | Nov 27, 2020 | Aug 28, 2020 | May 29, 2020 | Feb 28, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 9,412) | 8,978) | 10,855) | 11,232) | 10,716) | 11,023) | 10,008) | 11,084) | 10,410) | 9,274) | 8,342) | 8,996) | 8,489) | 7,908) | 7,476) | 8,669) | 8,619) | 8,078) | 7,384) | 8,146) | 7,387) | 6,649) | 6,455) | |||||||
| Current liabilities | 9,239) | 9,039) | 9,163) | 10,521) | 9,644) | 9,474) | 9,537) | 8,251) | 8,334) | 8,019) | 7,437) | 8,128) | 7,438) | 7,385) | 7,197) | 6,932) | 6,191) | 6,145) | 5,806) | 5,512) | 5,130) | 5,164) | 5,228) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 1.02 | 0.99 | 1.18 | 1.07 | 1.11 | 1.16 | 1.05 | 1.34 | 1.25 | 1.16 | 1.12 | 1.11 | 1.14 | 1.07 | 1.04 | 1.25 | 1.39 | 1.31 | 1.27 | 1.48 | 1.44 | 1.29 | 1.23 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 1.46 | 1.48 | 1.47 | 1.10 | 1.16 | 1.26 | 1.33 | 1.30 | 1.37 | 1.29 | 1.26 | 1.23 | 1.27 | 1.23 | 1.22 | 1.25 | 1.42 | 1.39 | 1.45 | — | — | — | — | |||||||
| AppLovin Corp. | 3.25 | 2.74 | 1.68 | 2.19 | 2.41 | 2.28 | 2.11 | 1.71 | 1.61 | 2.87 | 3.31 | 3.35 | 3.36 | 2.82 | 2.93 | — | — | — | — | — | — | — | — | |||||||
| Cadence Design Systems Inc. | 3.05 | 2.82 | 3.07 | 2.93 | 2.45 | 1.43 | 1.32 | 1.24 | 1.44 | 1.37 | 1.44 | 1.27 | 1.33 | 1.59 | 1.81 | 1.77 | 1.70 | 1.57 | 1.70 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 1.86 | 1.90 | 1.80 | 1.76 | 1.74 | 1.82 | 1.78 | 1.73 | 1.76 | 1.80 | 1.83 | 1.83 | 1.90 | 1.98 | 2.07 | 2.65 | 1.91 | 2.18 | 2.25 | — | — | — | — | |||||||
| Datadog Inc. | 3.66 | 3.43 | 2.74 | 2.64 | 2.13 | 2.01 | 3.43 | 3.17 | 3.35 | 3.42 | 3.19 | 3.09 | 3.23 | 3.31 | 3.33 | 3.54 | 3.94 | 4.31 | 5.45 | — | — | — | — | |||||||
| International Business Machines Corp. | 0.93 | 0.91 | 1.01 | 1.04 | 1.06 | 1.12 | 1.13 | 0.96 | 0.91 | 1.06 | 1.16 | 0.92 | 0.95 | 0.88 | 0.92 | 0.88 | 0.84 | 0.84 | 0.93 | — | — | — | — | |||||||
| Intuit Inc. | 1.45 | 1.27 | 1.24 | 1.29 | 1.50 | 1.17 | 1.25 | 1.47 | 1.51 | 1.23 | 1.37 | 1.39 | 1.63 | 1.18 | 2.10 | 1.94 | 1.96 | 1.53 | 3.09 | — | — | — | — | |||||||
| Microsoft Corp. | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 1.22 | 1.66 | 1.77 | 1.91 | 1.93 | 1.84 | 1.78 | 1.99 | 2.25 | 2.16 | 2.08 | 2.29 | 2.58 | 2.53 | — | — | — | — | |||||||
| Oracle Corp. | 1.02 | 0.81 | 0.72 | 0.72 | 0.85 | 0.79 | 0.87 | 0.91 | 0.82 | 0.65 | 0.60 | 1.62 | 1.52 | 1.65 | 2.04 | 2.30 | 2.16 | 2.17 | 2.66 | — | — | — | — | |||||||
| Palantir Technologies Inc. | 6.43 | 6.32 | 6.49 | 5.96 | 5.67 | 5.92 | 5.91 | 5.55 | 5.53 | 5.22 | 5.41 | 5.17 | 4.28 | 4.36 | 4.38 | — | — | — | — | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.90 | 0.84 | 0.84 | 0.89 | 0.84 | 0.83 | 0.86 | 0.78 | 0.74 | 0.64 | 0.70 | 0.77 | 0.74 | 0.66 | 0.68 | 0.91 | 1.38 | 0.98 | 1.63 | — | — | — | — | |||||||
| Salesforce Inc. | 1.11 | 1.04 | 1.11 | 1.09 | 1.04 | 1.02 | 1.02 | 1.02 | 1.05 | 1.06 | 1.03 | 1.05 | 1.06 | 0.93 | 1.33 | 1.23 | 1.22 | 1.15 | 1.15 | — | — | — | — | |||||||
| ServiceNow Inc. | 1.06 | 1.09 | 1.12 | 1.10 | 1.13 | 1.12 | 1.05 | 1.06 | 1.08 | 1.14 | 1.17 | 1.11 | 1.24 | 1.12 | 1.12 | 1.05 | 1.13 | 1.08 | 1.23 | — | — | — | — | |||||||
| Synopsys Inc. | 1.62 | 7.02 | 2.68 | 2.44 | 2.02 | 1.86 | 1.29 | 1.15 | 1.20 | 1.15 | 1.11 | 1.09 | 1.14 | 1.25 | 1.19 | 1.16 | 1.18 | 1.19 | 1.10 | 1.19 | 1.06 | 0.95 | 0.95 | |||||||
| Workday Inc. | 2.05 | 2.04 | 2.00 | 1.97 | 2.13 | 2.00 | 1.95 | 1.75 | 1.87 | 1.61 | 1.56 | 1.03 | 1.10 | 1.04 | 0.93 | 1.12 | 1.09 | 1.45 | 1.25 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,412 ÷ 9,239 = 1.02
2 Click competitor name to see calculations.
The analysis of the recent quarterly financial data reveals several trends and patterns regarding liquidity and short-term financial health. The focus is primarily on current assets, current liabilities, and the resulting current ratio over multiple periods.
- Current Assets
- Current assets exhibit a generally increasing trend over the timeline, starting at 6,455 million US dollars and reaching peaks above 11,000 million in some later quarters. Despite some fluctuations, the overall trajectory suggests growth in asset holdings that are liquid or expected to be converted to cash within a year. Notably, there are temporary decreases in some periods, but the asset base recovers and grows further in the following quarters.
- Current Liabilities
- Current liabilities show a steady upward trend, increasing from approximately 5,228 million US dollars at the beginning to levels ranging between 8,000 and 10,500 million in more recent quarters. This rise indicates a growing amount of obligations due within one year. Some quarters reflect sharper increases, suggesting potential short-term financing or operational expenses growth, followed by periods of stabilization or slight decreases.
- Current Ratio
- The current ratio, defined as current assets divided by current liabilities, displays fluctuation around a value close to 1.2 in earlier periods, peaking around 1.48 in late 2020, and progressively trending downwards toward levels just above or below 1.0 in the most recent quarters. This ratio consistently remains near or just above unity for most of the timeline, indicating that the company generally maintains enough current assets to cover its current liabilities. However, the downward trend in the latter stages, with values occasionally dipping below 1, could signal tightening liquidity and reduced short-term financial flexibility.
Overall, the data indicates growth in both short-term assets and liabilities, with assets generally slightly outpacing liabilities, supporting adequate liquidity. The current ratio's fluctuation and recent declines warrant attention, as values near or below 1 suggest less cushion to meet short-term obligations. Continuous monitoring of these liquidity measures is advisable to ensure sustained financial stability in forthcoming periods.
Quick Ratio
Adobe Inc., quick ratio calculation (quarterly data)
| Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 2023 | Mar 3, 2023 | Dec 2, 2022 | Sep 2, 2022 | Jun 3, 2022 | Mar 4, 2022 | Dec 3, 2021 | Sep 3, 2021 | Jun 4, 2021 | Mar 5, 2021 | Nov 27, 2020 | Aug 28, 2020 | May 29, 2020 | Feb 28, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,982) | 4,931) | 6,758) | 7,613) | 7,193) | 7,660) | 6,254) | 7,141) | 6,601) | 5,456) | 4,072) | 4,236) | 3,870) | 3,365) | 2,739) | 3,844) | 4,623) | 4,250) | 3,452) | 4,478) | 3,767) | 3,044) | 2,688) | |||||||
| Short-term investments | 958) | 782) | 677) | 273) | 322) | 405) | 566) | 701) | 915) | 1,145) | 1,581) | 1,860) | 1,894) | 1,934) | 1,962) | 1,954) | 1,541) | 1,518) | 1,511) | 1,514) | 1,497) | 1,307) | 1,483) | |||||||
| Trade receivables, net of allowances for doubtful accounts | 2,093) | 1,735) | 1,973) | 2,072) | 1,802) | 1,612) | 2,057) | 2,224) | 1,851) | 1,685) | 1,801) | 2,065) | 1,723) | 1,588) | 1,685) | 1,878) | 1,545) | 1,477) | 1,520) | 1,398) | 1,318) | 1,366) | 1,389) | |||||||
| Total quick assets | 8,033) | 7,448) | 9,408) | 9,958) | 9,317) | 9,677) | 8,877) | 10,066) | 9,367) | 8,286) | 7,454) | 8,161) | 7,487) | 6,887) | 6,386) | 7,676) | 7,709) | 7,245) | 6,483) | 7,390) | 6,582) | 5,717) | 5,560) | |||||||
| Current liabilities | 9,239) | 9,039) | 9,163) | 10,521) | 9,644) | 9,474) | 9,537) | 8,251) | 8,334) | 8,019) | 7,437) | 8,128) | 7,438) | 7,385) | 7,197) | 6,932) | 6,191) | 6,145) | 5,806) | 5,512) | 5,130) | 5,164) | 5,228) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 0.87 | 0.82 | 1.03 | 0.95 | 0.97 | 1.02 | 0.93 | 1.22 | 1.12 | 1.03 | 1.00 | 1.00 | 1.01 | 0.93 | 0.89 | 1.11 | 1.25 | 1.18 | 1.12 | 1.34 | 1.28 | 1.11 | 1.06 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 1.32 | 1.33 | 1.33 | 0.98 | 1.03 | 1.13 | 1.18 | 1.18 | 1.24 | 1.15 | 1.12 | 1.12 | 1.14 | 1.10 | 1.10 | 1.14 | 1.31 | 1.27 | 1.34 | — | — | — | — | |||||||
| AppLovin Corp. | 3.05 | 2.54 | 1.51 | 2.04 | 2.25 | 2.10 | 1.93 | 1.54 | 1.47 | 2.61 | 3.04 | 3.08 | 2.96 | 2.55 | 2.67 | — | — | — | — | — | — | — | — | |||||||
| Cadence Design Systems Inc. | 2.49 | 2.33 | 2.58 | 2.43 | 2.00 | 1.06 | 0.96 | 0.94 | 1.10 | 1.10 | 1.19 | 1.02 | 1.13 | 1.36 | 1.56 | 1.47 | 1.48 | 1.33 | 1.43 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 1.69 | 1.72 | 1.64 | 1.60 | 1.59 | 1.66 | 1.63 | 1.58 | 1.62 | 1.66 | 1.68 | 1.68 | 1.76 | 1.81 | 1.93 | 2.50 | 1.76 | 2.01 | 2.07 | — | — | — | — | |||||||
| Datadog Inc. | 3.55 | 3.34 | 2.66 | 2.57 | 2.07 | 1.95 | 3.32 | 3.08 | 3.26 | 3.31 | 3.09 | 3.01 | 3.14 | 3.21 | 3.23 | 3.45 | 3.84 | 4.19 | 5.31 | — | — | — | — | |||||||
| International Business Machines Corp. | 0.78 | 0.77 | 0.86 | 0.90 | 0.89 | 0.95 | 0.98 | 0.82 | 0.74 | 0.90 | 0.99 | 0.76 | 0.75 | 0.68 | 0.73 | 0.69 | 0.64 | 0.66 | 0.75 | — | — | — | — | |||||||
| Intuit Inc. | 0.85 | 0.68 | 0.54 | 0.71 | 1.00 | 0.55 | 0.66 | 1.25 | 1.29 | 1.02 | 1.10 | 1.17 | 1.29 | 0.78 | 1.71 | 1.60 | 1.72 | 1.20 | 2.74 | — | — | — | — | |||||||
| Microsoft Corp. | 1.15 | 1.10 | 1.06 | 1.06 | 1.05 | 1.02 | 1.45 | 1.54 | 1.66 | 1.66 | 1.59 | 1.57 | 1.77 | 2.05 | 1.96 | 1.90 | 2.10 | 2.36 | 2.30 | — | — | — | — | |||||||
| Oracle Corp. | 0.87 | 0.67 | 0.59 | 0.59 | 0.69 | 0.63 | 0.73 | 0.74 | 0.65 | 0.50 | 0.49 | 1.43 | 1.34 | 1.45 | 1.90 | 2.15 | 2.00 | 2.02 | 2.50 | — | — | — | — | |||||||
| Palantir Technologies Inc. | 6.31 | 6.19 | 6.36 | 5.83 | 5.55 | 5.77 | 5.80 | 5.41 | 5.39 | 5.08 | 5.25 | 4.92 | 4.08 | 4.09 | 4.15 | — | — | — | — | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.83 | 0.78 | 0.77 | 0.82 | 0.78 | 0.78 | 0.81 | 0.72 | 0.66 | 0.58 | 0.65 | 0.73 | 0.70 | 0.62 | 0.64 | 0.86 | 1.23 | 0.88 | 1.48 | — | — | — | — | |||||||
| Salesforce Inc. | 0.90 | 0.86 | 0.95 | 0.96 | 0.86 | 0.86 | 0.86 | 0.90 | 0.89 | 0.91 | 0.88 | 0.93 | 0.89 | 0.79 | 1.19 | 1.11 | 1.05 | 0.98 | 1.00 | — | — | — | — | |||||||
| ServiceNow Inc. | 0.96 | 0.99 | 1.03 | 1.02 | 1.05 | 1.03 | 0.98 | 1.00 | 1.01 | 1.08 | 1.11 | 1.06 | 1.17 | 1.06 | 1.06 | 1.01 | 1.07 | 1.03 | 1.19 | — | — | — | — | |||||||
| Synopsys Inc. | 1.16 | 6.34 | 1.99 | 1.88 | 1.10 | 0.99 | 0.88 | 0.85 | 0.92 | 0.90 | 0.86 | 0.85 | 0.87 | 0.99 | 0.93 | 0.89 | 0.90 | 0.92 | 0.83 | 0.94 | 0.82 | 0.73 | 0.73 | |||||||
| Workday Inc. | 1.94 | 1.92 | 1.88 | 1.87 | 2.01 | 1.90 | 1.83 | 1.66 | 1.75 | 1.52 | 1.47 | 0.96 | 1.03 | 0.98 | 0.86 | 1.07 | 1.02 | 1.35 | 1.15 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,033 ÷ 9,239 = 0.87
2 Click competitor name to see calculations.
The quarterly financial data shows fluctuations in total quick assets, current liabilities, and the quick ratio over the analyzed periods.
- Total Quick Assets
- The total quick assets generally exhibit an upward trend from early 2020 through late 2023, increasing from approximately 5.56 billion US dollars to peak near 10.07 billion US dollars by December 2023. Subsequent quarters into 2024 reveal some volatility, with values oscillating between roughly 7.4 billion and 9.9 billion US dollars. The fluctuations toward the end of the period may indicate periodic shifts in liquid asset management or cash reserves adjustments.
- Current Liabilities
- Current liabilities have also trended upward over the timeframe, starting around 5.23 billion US dollars in early 2020 and reaching a high near 10.5 billion US dollars by early 2025. The trajectory shows steady growth with minor short-term fluctuations. This increase suggests ongoing rises in short-term obligations or payables, which may be linked to expanded operations or financing activities.
- Quick Ratio
- The quick ratio fluctuates somewhat throughout the period, initially staying above 1.0 in the 2020 to 2021 range, indicating sufficient liquid assets to cover current liabilities. However, beginning around early 2022, the ratio dips below 1.0 more frequently, with values as low as 0.82 recorded by mid-2025. This decline signals a reduced liquidity buffer relative to short-term liabilities in recent periods, which could potentially point to tighter liquidity conditions or greater short-term financial commitments.
Overall, while both quick assets and current liabilities have increased substantially over time, the quick ratio reveals that the increase in current liabilities may be outpacing the growth in liquid assets in recent quarters. This trend warrants attention to liquidity management to ensure the company maintains adequate short-term financial stability.
Cash Ratio
Adobe Inc., cash ratio calculation (quarterly data)
| Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 2023 | Mar 3, 2023 | Dec 2, 2022 | Sep 2, 2022 | Jun 3, 2022 | Mar 4, 2022 | Dec 3, 2021 | Sep 3, 2021 | Jun 4, 2021 | Mar 5, 2021 | Nov 27, 2020 | Aug 28, 2020 | May 29, 2020 | Feb 28, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,982) | 4,931) | 6,758) | 7,613) | 7,193) | 7,660) | 6,254) | 7,141) | 6,601) | 5,456) | 4,072) | 4,236) | 3,870) | 3,365) | 2,739) | 3,844) | 4,623) | 4,250) | 3,452) | 4,478) | 3,767) | 3,044) | 2,688) | |||||||
| Short-term investments | 958) | 782) | 677) | 273) | 322) | 405) | 566) | 701) | 915) | 1,145) | 1,581) | 1,860) | 1,894) | 1,934) | 1,962) | 1,954) | 1,541) | 1,518) | 1,511) | 1,514) | 1,497) | 1,307) | 1,483) | |||||||
| Total cash assets | 5,940) | 5,713) | 7,435) | 7,886) | 7,515) | 8,065) | 6,820) | 7,842) | 7,516) | 6,601) | 5,653) | 6,096) | 5,764) | 5,299) | 4,701) | 5,798) | 6,164) | 5,768) | 4,963) | 5,992) | 5,264) | 4,351) | 4,171) | |||||||
| Current liabilities | 9,239) | 9,039) | 9,163) | 10,521) | 9,644) | 9,474) | 9,537) | 8,251) | 8,334) | 8,019) | 7,437) | 8,128) | 7,438) | 7,385) | 7,197) | 6,932) | 6,191) | 6,145) | 5,806) | 5,512) | 5,130) | 5,164) | 5,228) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 0.64 | 0.63 | 0.81 | 0.75 | 0.78 | 0.85 | 0.72 | 0.95 | 0.90 | 0.82 | 0.76 | 0.75 | 0.77 | 0.72 | 0.65 | 0.84 | 1.00 | 0.94 | 0.85 | 1.09 | 1.03 | 0.84 | 0.80 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.51 | 0.50 | 0.48 | 0.26 | 0.30 | 0.32 | 0.41 | 0.50 | 0.50 | 0.38 | 0.36 | 0.45 | 0.41 | 0.35 | 0.37 | 0.52 | 0.67 | 0.65 | 0.68 | — | — | — | — | |||||||
| AppLovin Corp. | 1.55 | 1.09 | 0.39 | 0.70 | 0.73 | 0.63 | 0.57 | 0.53 | 0.41 | 1.48 | 2.01 | 1.87 | 1.74 | 1.48 | 1.80 | — | — | — | — | — | — | — | — | |||||||
| Cadence Design Systems Inc. | 1.96 | 1.89 | 2.14 | 1.93 | 1.66 | 0.69 | 0.69 | 0.63 | 0.76 | 0.73 | 0.78 | 0.65 | 0.82 | 0.99 | 1.18 | 1.12 | 1.12 | 0.91 | 0.94 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 1.42 | 1.48 | 1.38 | 1.29 | 1.35 | 1.42 | 1.41 | 1.28 | 1.36 | 1.41 | 1.44 | 1.42 | 1.54 | 1.57 | 1.71 | 2.22 | 1.51 | 1.76 | 1.81 | — | — | — | — | |||||||
| Datadog Inc. | 3.13 | 2.89 | 2.40 | 2.25 | 1.80 | 1.65 | 2.86 | 2.58 | 2.78 | 2.87 | 2.61 | 2.48 | 2.62 | 2.72 | 2.78 | 2.94 | 3.33 | 3.70 | 4.82 | — | — | — | — | |||||||
| International Business Machines Corp. | 0.42 | 0.41 | 0.50 | 0.45 | 0.48 | 0.54 | 0.60 | 0.39 | 0.36 | 0.50 | 0.57 | 0.28 | 0.32 | 0.24 | 0.32 | 0.22 | 0.23 | 0.22 | 0.31 | — | — | — | — | |||||||
| Intuit Inc. | 0.64 | 0.34 | 0.39 | 0.54 | 0.76 | 0.24 | 0.45 | 0.97 | 0.97 | 0.54 | 0.82 | 0.90 | 1.09 | 0.48 | 1.52 | 1.46 | 1.52 | 1.02 | 2.69 | — | — | — | — | |||||||
| Microsoft Corp. | 0.70 | 0.66 | 0.68 | 0.60 | 0.68 | 0.67 | 1.15 | 1.07 | 1.22 | 1.22 | 1.23 | 1.10 | 1.35 | 1.62 | 1.62 | 1.47 | 1.74 | 1.96 | 1.97 | — | — | — | — | |||||||
| Oracle Corp. | 0.60 | 0.39 | 0.34 | 0.34 | 0.40 | 0.36 | 0.48 | 0.44 | 0.38 | 0.27 | 0.32 | 1.12 | 1.12 | 1.21 | 1.70 | 1.93 | 1.77 | 1.81 | 2.26 | — | — | — | — | |||||||
| Palantir Technologies Inc. | 5.45 | 5.51 | 5.61 | 5.25 | 4.84 | 4.96 | 5.15 | 4.93 | 4.77 | 4.53 | 4.83 | 4.48 | 3.59 | 3.69 | 3.77 | — | — | — | — | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.43 | 0.43 | 0.46 | 0.34 | 0.41 | 0.43 | 0.52 | 0.31 | 0.46 | 0.39 | 0.46 | 0.44 | 0.50 | 0.45 | 0.48 | 0.57 | 0.98 | 0.72 | 1.22 | — | — | — | — | |||||||
| Salesforce Inc. | 0.66 | 0.60 | 0.76 | 0.53 | 0.61 | 0.60 | 0.65 | 0.48 | 0.65 | 0.67 | 0.68 | 0.48 | 0.62 | 0.55 | 0.98 | 0.67 | 0.78 | 0.72 | 0.76 | — | — | — | — | |||||||
| ServiceNow Inc. | 0.69 | 0.72 | 0.80 | 0.69 | 0.78 | 0.75 | 0.73 | 0.66 | 0.73 | 0.82 | 0.85 | 0.71 | 0.89 | 0.81 | 0.83 | 0.67 | 0.80 | 0.76 | 0.94 | — | — | — | — | |||||||
| Synopsys Inc. | 0.75 | 5.93 | 1.62 | 1.53 | 0.79 | 0.66 | 0.48 | 0.53 | 0.67 | 0.62 | 0.48 | 0.56 | 0.60 | 0.70 | 0.51 | 0.65 | 0.66 | 0.65 | 0.47 | 0.58 | 0.51 | 0.42 | 0.34 | |||||||
| Workday Inc. | 1.62 | 1.63 | 1.62 | 1.55 | 1.71 | 1.59 | 1.56 | 1.32 | 1.48 | 1.30 | 1.31 | 0.72 | 0.83 | 0.77 | 0.71 | 0.83 | 0.81 | 1.08 | 0.94 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,940 ÷ 9,239 = 0.64
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets demonstrate notable fluctuations over the observed periods. Initial growth is evident from February 2020 through November 2020, with cash assets increasing from approximately $4.17 billion to nearly $6.0 billion. This is followed by a decline around March 2021 to $4.96 billion, then another upward movement peaking at $7.84 billion by December 2023. Post-December 2023, cash assets decline moderately but remain above $5.7 billion through August 2025. Overall, cash assets exhibit a pattern of periodic rises and declines, with a general upward trajectory until late 2023, succeeded by slight reductions.
- Current Liabilities Trend
- Current liabilities show a consistent and steady increase over the analyzed quarters. Beginning at $5.22 billion in February 2020, liabilities grow incrementally with occasional larger increases, reaching a peak of about $10.52 billion by February 2025. Following this peak, current liabilities decrease somewhat to about $9.24 billion by August 2025. The overall pattern indicates a persistent enlargement in short-term obligations, suggesting an expansion in operational or financing activities that require coverage of increased payables or debts.
- Cash Ratio Analysis
- The cash ratio, reflecting liquidity through the comparison of cash assets to current liabilities, fluctuates between 0.63 and 1.09. The highest ratios are recorded early in August and November 2020, indicating a relatively strong liquidity position where cash exceeds current liabilities, albeit marginally. A marked dip occurs around March 2022 with values falling as low as 0.65, signaling tighter liquidity. Subsequent quarters show moderate recovery with occasional improvements nearing 0.9 but do not consistently regain the earlier peaks. The general trend suggests some volatility in liquidity, with periods where cash coverage over current liabilities is less robust.
- Overall Financial Position Insights
- The interplay between increasing current liabilities and variable cash assets results in an uneven liquidity profile. While cash assets tend to increase over time with some volatility, current liabilities generally expand at a steadier and faster rate, leading to a downward pressure on the cash ratio. This indicates growing short-term obligations that may challenge liquidity if cash inflows do not keep pace. Such trends underline the importance of monitoring working capital management and ensuring sufficient liquid resources to meet near-term liabilities.