Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Autodesk Inc., liquidity ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
- Current Ratio
- The current ratio demonstrates a fluctuating pattern over the observed periods. Starting at 0.7 in early 2019, it increased to 0.83 in 2020 and remained stable through 2021. Subsequently, it declined to 0.69 in 2022 before recovering to 0.84 in 2023. The ratio slightly decreased again to 0.82 in 2024. Overall, the current ratio shows moderate variability with a tendency to stay below 1, indicating that current liabilities consistently exceed current assets but with some improvement in recent years.
- Quick Ratio
- The quick ratio follows a similar trajectory to the current ratio, reflecting liquidity excluding inventory. It rose from 0.62 in 2019 to 0.78 in 2020, slightly dipping to 0.77 in 2021. It then declined to 0.62 in 2022 before increasing to 0.76 in 2023 and decreasing slightly to 0.72 in 2024. This trend suggests fluctuations in the company’s ability to meet short-term obligations without relying on inventory but generally indicates a less than comfortable liquidity position.
- Cash Ratio
- The cash ratio, measuring the most liquid assets against current liabilities, started at 0.41 in 2019 and improved to 0.57 in 2020, maintaining stability through 2021. It decreased to 0.44 in 2022, before rising modestly to 0.52 for 2023 and staying steady into 2024. These changes point to variability in immediate cash availability but consistently show the company holding only slightly more than half the cash needed to cover current liabilities.
- Summary of Liquidity Metrics
- All three liquidity ratios indicate periodic fluctuations but remain under or close to the benchmark value of 1, highlighting a recurring liquidity constraint. The improvements seen around 2020 and 2023 suggest periods of strengthened short-term financial health, whereas declines in 2022 show increased pressure on liquidity. The overall pattern underscores a cautious liquidity profile with recurring vulnerabilities in meeting short-term obligations fully with current and liquid assets.
Current Ratio
Autodesk Inc., current ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Current Ratio, Sector | |||||||
| Software & Services | |||||||
| Current Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets have shown an overall upward trend over the six-year period. Starting at 1,620 million US dollars in 2019, the value increased significantly to 2,659 million by 2020. Following this, the assets grew at a slower pace, reaching 2,699 million in 2021 and 2,764 million in 2022. The next two years saw another notable increase, with current assets rising to 3,341 million in 2023 and 3,579 million in 2024.
- Current Liabilities
- Current liabilities have also trended upwards, beginning at 2,301 million US dollars in 2019 and increasing to 3,219 million in 2020. The liabilities continued to climb gradually, reaching 3,255 million by 2021 and then a more marked increase to 4,009 million in 2022. The figures slightly decreased in 2023 to 4,000 million, before rising again to 4,351 million in 2024.
- Current Ratio
- The current ratio has fluctuated throughout the period, reflecting changes in liquidity. It began at 0.7 in 2019, improved to 0.83 in 2020 and held steady at 0.83 in 2021. A decline to 0.69 occurred in 2022, indicating reduced short-term financial strength. However, the ratio rebounded to 0.84 in 2023 and slightly decreased to 0.82 in 2024, suggesting relative stabilization in the company's ability to cover current liabilities with current assets.
- Overall Insights
- The data indicates that both current assets and current liabilities have increased substantially over the years, with liabilities generally increasing at a faster rate initially, leading to a lower current ratio in some periods. The fluctuations in the current ratio highlight variability in liquidity management, but the company appears to have regained a better position by the end of the period. The most recent ratios suggest an improved but still moderately constrained liquidity situation, hovering below or slightly above 1.0 which often is considered a benchmark for adequate short-term financial health.
Quick Ratio
Autodesk Inc., quick ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Marketable securities | |||||||
| Accounts receivable, net | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Quick Ratio, Sector | |||||||
| Software & Services | |||||||
| Quick Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets have generally increased over the six-year period. Starting at 1,428 million USD in January 2019, the value more than doubled by January 2024, reaching 3,122 million USD. A significant jump is observed between 2019 and 2020, followed by stabilization around 2,480 to 2,500 million USD in 2021 and 2022. Subsequently, there is a notable rise in 2023 and 2024, indicating improved liquidity or asset holdings that are readily convertible to cash.
- Current liabilities
- Current liabilities have consistently risen throughout the timeframe, beginning at 2,301 million USD in January 2019 and increasing to 4,351 million USD by January 2024. The increment appears steady, with larger increments post-2020 and peaking at 4,009 million USD in 2022 before a slight increase in 2023 and further growth in 2024.
- Quick ratio
- The quick ratio reflects the company’s short-term liquidity position and shows some volatility across the years. It increased from 0.62 in 2019 to 0.78 in 2020, suggesting improved ability to cover current liabilities with quick assets at that time. However, the ratio dipped to 0.62 again in 2022, coinciding with an increase in current liabilities, before recovering somewhat to 0.76 in 2023 and slightly decreasing to 0.72 in 2024. Despite fluctuations, the quick ratio remains below 1.0 throughout, indicating that quick assets consistently fall short of current liabilities.
- Overall trends and insights
- While total quick assets have nearly more than doubled, current liabilities have increased at an even greater pace, exerting pressure on the liquidity position of the company. The quick ratio's fluctuation below the threshold of 1.0 highlights ongoing challenges in meeting short-term obligations strictly from quick assets. The improvements in certain years may reflect targeted efforts to strengthen liquidity, but the persistent ratio under 1 suggests reliance on other current assets or financing to meet liabilities. Continuous monitoring is advised to ensure that increasing liabilities do not outpace the company’s liquid asset base, potentially impacting financial stability.
Cash Ratio
Autodesk Inc., cash ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Marketable securities | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Cash Ratio, Sector | |||||||
| Software & Services | |||||||
| Cash Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrated a significant upward trend from 2019 to 2024. Starting at $954 million in 2019, the amount nearly doubled in 2020 to $1,844 million and then remained relatively stable in 2021 at $1,857 million. A slight decline was observed in 2022, dropping to $1,764 million, followed by a recovery and growth in 2023 and 2024, reaching $2,072 million and $2,246 million respectively. This indicates an overall strengthening of liquidity through cash holdings over the observed period.
- Current liabilities
- Current liabilities exhibited a steady increase over the six-year period. From $2,301 million in 2019, the liabilities rose each year, reaching $3,219 million in 2020 and further to $3,255 million in 2021. A more pronounced increase occurred in 2022 and 2023 with values of $4,009 million and $4,000 million respectively, culminating in $4,351 million in 2024. This upward movement in current liabilities suggests growing short-term obligations.
- Cash ratio
- The cash ratio, which measures liquidity by comparing total cash assets to current liabilities, fluctuated within a narrow range. It started at 0.41 in 2019, improved substantially to 0.57 in 2020 and remained at this level in 2021. However, the ratio declined to 0.44 in 2022, indicating a decrease in the company's capacity to cover short-term liabilities with cash. The ratio slightly improved to 0.52 in 2023 and remained stable in 2024. These variations reveal periods of enhanced liquidity followed by slight weakening but overall maintaining moderate coverage of current liabilities by cash.