Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Autodesk Inc., liquidity ratios
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).
Liquidity analysis over the six-year period ending January 31, 2024, reveals a consistent trend where current assets remain below current liabilities. All three primary liquidity metrics remained below the 1.0 threshold throughout the observed timeframe, suggesting a structural working capital strategy characterized by a reliance on continuous cash flow or short-term financing to meet immediate obligations.
- Current Ratio
- The current ratio exhibited volatility, fluctuating between a low of 0.69 in 2022 and a peak of 0.84 in 2023. While there was an initial increase from 0.70 in 2019 to 0.83 in 2020 and 2021, a notable contraction occurred in 2022 before the ratio recovered to stabilize around 0.82 by January 31, 2024.
- Quick Ratio
- The quick ratio closely mirrors the trajectory of the current ratio, ranging from 0.62 to 0.78. The minimal variance between the current and quick ratios suggests that inventories represent a negligible portion of the company's current asset composition. The ratio experienced a dip in 2022 to 0.62, coinciding with the decline in the current ratio, and ended the period at 0.72 in 2024.
- Cash Ratio
- The cash ratio demonstrates a relatively stable profile, moving from 0.41 in 2019 to 0.52 in 2024. A period of peak liquidity was observed between 2020 and 2021, with the ratio holding at 0.57. A subsequent decline to 0.44 in 2022 was followed by a return to 0.52 for the 2023 and 2024 fiscal years. The proximity of the cash ratio to the quick ratio indicates that cash and cash equivalents constitute the vast majority of the entity's liquid assets.
Overall, the liquidity profile is characterized by a recurring pattern of contraction and recovery, specifically highlighted by the dip in 2022 across all metrics. The sustained levels below 1.0 across all ratios indicate a consistent operating model where short-term liabilities exceed liquid assets, though the high proportion of cash relative to total current assets provides a baseline of immediate liquidity.
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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 | 3,579) | 3,341) | 2,764) | 2,699) | 2,659) | 1,620) | |
| Current liabilities | 4,351) | 4,000) | 4,009) | 3,255) | 3,219) | 2,301) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.82 | 0.84 | 0.69 | 0.83 | 0.83 | 0.70 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | — | |
| Adobe Inc. | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | — | |
| AppLovin Corp. | 2.19 | 1.71 | 3.35 | 5.05 | — | — | |
| Cadence Design Systems Inc. | 2.93 | 1.24 | 1.27 | 1.77 | — | — | |
| Datadog Inc. | 2.64 | 3.17 | 3.09 | 3.54 | — | — | |
| International Business Machines Corp. | 1.04 | 0.96 | 0.92 | 0.88 | — | — | |
| Intuit Inc. | 1.29 | 1.47 | 1.39 | 1.94 | — | — | |
| Microsoft Corp. | 1.27 | 1.77 | 1.78 | 2.08 | — | — | |
| Oracle Corp. | 0.72 | 0.91 | 1.62 | 2.30 | — | — | |
| Palantir Technologies Inc. | 5.96 | 5.55 | 5.17 | 4.34 | — | — | |
| Palo Alto Networks Inc. | 0.89 | 0.78 | 0.77 | 0.91 | — | — | |
| Salesforce Inc. | 1.09 | 1.02 | 1.05 | 1.23 | — | — | |
| ServiceNow Inc. | 1.10 | 1.06 | 1.11 | 1.05 | — | — | |
| Synopsys Inc. | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | — | |
| Workday Inc. | 1.97 | 1.75 | 1.03 | 1.12 | — | — | |
| Current Ratio, Sector | |||||||
| Software & Services | 1.19 | 1.40 | 1.43 | 1.68 | — | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.24 | 1.41 | 1.37 | 1.55 | — | — | |
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
= 3,579 ÷ 4,351 = 0.82
2 Click competitor name to see calculations.
The liquidity position is characterized by a current ratio that consistently remains below the 1.0 threshold, indicating that current liabilities exceed current assets across all reported periods from 2019 to 2024.
- Current Assets Trend
- A consistent upward trajectory is observed in current assets, which grew from 1,620 million US dollars in January 2019 to 3,579 million US dollars in January 2024. This reflects a steady increase in short-term resources over the six-year period.
- Current Liabilities Trend
- Current liabilities exhibited a similar growth pattern, rising from 2,301 million US dollars in 2019 to 4,351 million US dollars in 2024. The expansion of short-term obligations has largely mirrored the growth in assets, maintaining a persistent gap between the two.
- Current Ratio Analysis
- The current ratio has fluctuated between a low of 0.69 and a high of 0.84. After improving from 0.70 in 2019 to 0.83 in 2020 and 2021, a contraction occurred in 2022, bringing the ratio to 0.69. A recovery followed in 2023 to 0.84, before settling at 0.82 in 2024.
The fact that the current ratio has remained below 1.0 throughout the analyzed period suggests a structural reliance on operational cash flows or external financing to meet short-term obligations, as liquid assets are insufficient to cover total current liabilities on a standalone basis.
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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 | 1,892) | 1,947) | 1,528) | 1,772) | 1,775) | 886) | |
| Marketable securities | 354) | 125) | 236) | 85) | 69) | 68) | |
| Accounts receivable, net | 876) | 961) | 716) | 643) | 652) | 474) | |
| Total quick assets | 3,122) | 3,033) | 2,480) | 2,500) | 2,496) | 1,428) | |
| Current liabilities | 4,351) | 4,000) | 4,009) | 3,255) | 3,219) | 2,301) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.72 | 0.76 | 0.62 | 0.77 | 0.78 | 0.62 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | — | |
| Adobe Inc. | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 | — | |
| AppLovin Corp. | 2.04 | 1.54 | 3.08 | 4.82 | — | — | |
| Cadence Design Systems Inc. | 2.53 | 1.02 | 1.02 | 1.47 | — | — | |
| Datadog Inc. | 2.57 | 3.08 | 3.01 | 3.45 | — | — | |
| International Business Machines Corp. | 0.90 | 0.82 | 0.76 | 0.69 | — | — | |
| Intuit Inc. | 0.71 | 1.25 | 1.17 | 1.65 | — | — | |
| Microsoft Corp. | 1.06 | 1.54 | 1.57 | 1.90 | — | — | |
| Oracle Corp. | 0.59 | 0.74 | 1.43 | 2.15 | — | — | |
| Palantir Technologies Inc. | 5.83 | 5.41 | 4.92 | 4.11 | — | — | |
| Palo Alto Networks Inc. | 0.82 | 0.72 | 0.75 | 0.88 | — | — | |
| Salesforce Inc. | 0.96 | 0.90 | 0.93 | 1.11 | — | — | |
| ServiceNow Inc. | 1.02 | 1.00 | 1.06 | 1.01 | — | — | |
| Synopsys Inc. | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | — | |
| Workday Inc. | 1.87 | 1.66 | 0.96 | 1.07 | — | — | |
| Quick Ratio, Sector | |||||||
| Software & Services | 1.01 | 1.22 | 1.26 | 1.52 | — | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 0.96 | 1.12 | 1.09 | 1.30 | — | — | |
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
= 3,122 ÷ 4,351 = 0.72
2 Click competitor name to see calculations.
The liquidity position over the analyzed six-year period demonstrates a consistent pattern where quick assets remain below the total of current liabilities, resulting in a quick ratio that stays below the 1.0 threshold throughout the duration.
- Quick Asset Growth
- Total quick assets experienced a substantial overall increase, rising from 1,428 million USD in 2019 to 3,122 million USD in 2024. A significant surge was observed between 2019 and 2020, followed by a period of stability between 2020 and 2022, and a further upward trend from 2023 through 2024.
- Current Liabilities Expansion
- Current liabilities followed a steady upward trajectory, increasing from 2,301 million USD in 2019 to 4,351 million USD in 2024. A notable increase in short-term obligations occurred between 2021 and 2022, where liabilities rose from 3,255 million USD to 4,009 million USD.
- Quick Ratio Analysis
- The quick ratio exhibited volatility, fluctuating between a minimum of 0.62 and a maximum of 0.78. An initial improvement was noted from 0.62 in 2019 to 0.78 in 2020. However, the ratio declined back to 0.62 in 2022, reflecting the increase in current liabilities during that period. Although a recovery to 0.76 occurred in 2023, the ratio moderated to 0.72 by January 31, 2024. The persistent value below 1.0 indicates that liquid assets are insufficient to cover all current liabilities immediately without the sale of inventory or other less liquid current assets.
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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 | 1,892) | 1,947) | 1,528) | 1,772) | 1,775) | 886) | |
| Marketable securities | 354) | 125) | 236) | 85) | 69) | 68) | |
| Total cash assets | 2,246) | 2,072) | 1,764) | 1,857) | 1,844) | 954) | |
| Current liabilities | 4,351) | 4,000) | 4,009) | 3,255) | 3,219) | 2,301) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.52 | 0.52 | 0.44 | 0.57 | 0.57 | 0.41 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | — | |
| Adobe Inc. | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | — | |
| AppLovin Corp. | 0.70 | 0.53 | 1.87 | 4.02 | — | — | |
| Cadence Design Systems Inc. | 2.03 | 0.72 | 0.66 | 1.13 | — | — | |
| Datadog Inc. | 2.25 | 2.58 | 2.48 | 2.94 | — | — | |
| International Business Machines Corp. | 0.45 | 0.39 | 0.28 | 0.22 | — | — | |
| Intuit Inc. | 0.54 | 0.97 | 0.90 | 1.46 | — | — | |
| Microsoft Corp. | 0.60 | 1.07 | 1.10 | 1.47 | — | — | |
| Oracle Corp. | 0.34 | 0.44 | 1.12 | 1.93 | — | — | |
| Palantir Technologies Inc. | 5.25 | 4.93 | 4.48 | 3.83 | — | — | |
| Palo Alto Networks Inc. | 0.34 | 0.31 | 0.44 | 0.57 | — | — | |
| Salesforce Inc. | 0.53 | 0.48 | 0.48 | 0.67 | — | — | |
| ServiceNow Inc. | 0.69 | 0.66 | 0.71 | 0.67 | — | — | |
| Synopsys Inc. | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | — | |
| Workday Inc. | 1.55 | 1.32 | 0.72 | 0.83 | — | — | |
| Cash Ratio, Sector | |||||||
| Software & Services | 0.58 | 0.78 | 0.82 | 1.12 | — | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.57 | 0.71 | 0.67 | 0.89 | — | — | |
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
= 2,246 ÷ 4,351 = 0.52
2 Click competitor name to see calculations.
The liquidity position of the organization has experienced moderate fluctuations between fiscal years 2019 and 2024, characterized by a simultaneous increase in both cash reserves and short-term obligations. While total cash assets have grown significantly over the period, the growth in current liabilities has largely offset these gains, resulting in a cash ratio that remains well below 1.00.
- Cash Asset Trends
- Total cash assets exhibited a sharp increase from 954 million USD in January 2019 to 1,844 million USD in January 2020. Following a period of relative stability and a slight contraction in 2022, cash holdings resumed an upward trajectory, reaching a peak of 2,246 million USD by January 2024. This represents an overall increase of approximately 135% over the six-year duration.
- Current Liability Expansion
- Current liabilities have followed a consistent upward trend, rising from 2,301 million USD in 2019 to 4,351 million USD in 2024. The most notable increases occurred between 2019 and 2020, and again between 2021 and 2022, indicating a steady expansion of short-term financial obligations.
- Cash Ratio Analysis
- The cash ratio, which measures the ability to cover current liabilities using only cash and cash equivalents, fluctuated between a low of 0.41 in 2019 and a high of 0.57 in 2020 and 2021. A decline to 0.44 was observed in 2022, coinciding with a peak in current liabilities. However, the ratio recovered and stabilized at 0.52 for the 2023 and 2024 fiscal years, suggesting a consistent capacity to cover approximately 52% of immediate liabilities with available cash.
The data indicates that while the organization has aggressively increased its cash stockpile, it has not done so at a rate that significantly alters its immediate liquidity coverage ratio. The stabilization of the cash ratio at 0.52 in the most recent two years suggests a managed balance between liquidity accumulation and the assumption of short-term liabilities.
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