Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Datadog Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio shows a general declining trend from March 2020 through to March 2024, dropping from a high of 6.74 in June 2020 to a low near 2.01 in June 2024. This decrease indicates a reduction in short-term liquidity over this period. However, from June 2024 onwards, there is a visible improvement, with the ratio increasing to 3.43 by June 2025, suggesting a recovery or strengthening in the company's ability to cover current liabilities with current assets.
- Quick Ratio
- The quick ratio mirrors the pattern observed in the current ratio, starting high at 6.59 in June 2020 and gradually decreasing to a low of 1.95 in June 2024. This decline points to a decreasing proportion of liquid assets (excluding inventory) available to cover current liabilities. After June 2024, the quick ratio shows a rebound, reaching 3.34 by June 2025, which indicates an improvement in the company's immediate liquidity position over the later quarters.
- Cash Ratio
- The cash ratio, representing the company's most liquid assets relative to current liabilities, also declines consistently from 6.07 in June 2020 to 1.65 in June 2024. This suggests a diminishing cushion of cash and cash equivalents to meet short-term obligations during that timeframe. From mid-2024 onward, the cash ratio increases steadily, ending at 2.89 in June 2025, signifying strengthening cash reserves in relation to current liabilities.
Current Ratio
Datadog Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Current assets | 4,644,676) | 5,076,338) | 4,911,115) | 3,789,434) | 3,592,090) | 3,333,663) | 3,178,137) | 2,819,484) | 2,600,070) | 2,462,992) | 2,344,234) | 2,176,569) | 2,069,588) | 2,003,671) | 1,870,948) | 1,736,336) | 1,642,386) | 1,746,857) | 1,718,080) | 1,652,975) | 1,626,072) | 933,065) | |||||||
| Current liabilities | 1,353,192) | 1,854,823) | 1,862,713) | 1,780,263) | 1,790,879) | 972,793) | 1,003,052) | 842,476) | 761,362) | 772,954) | 759,748) | 674,408) | 625,876) | 601,972) | 528,696) | 440,202) | 381,057) | 320,814) | 297,844) | 254,650) | 241,408) | 210,638) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 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 | 5.77 | 6.49 | 6.74 | 4.43 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 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 | 1.40 | 1.37 | 1.38 | 1.39 | |||||||
| Adobe Inc. | 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 | |||||||
| Cadence Design Systems Inc. | 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 | 1.86 | 1.55 | 1.42 | 1.38 | |||||||
| CrowdStrike Holdings Inc. | 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 | 2.38 | 2.53 | 2.94 | 1.03 | |||||||
| Fair Isaac Corp. | 2.11 | 1.80 | 1.62 | 1.87 | 2.04 | 1.31 | 1.51 | 1.46 | 1.40 | 1.36 | 1.46 | 1.23 | 1.26 | 1.44 | 0.99 | 1.02 | 1.10 | 1.30 | 1.29 | 1.05 | 1.01 | 1.04 | |||||||
| International Business Machines Corp. | 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 | 0.98 | 1.05 | 1.04 | 0.96 | |||||||
| Intuit Inc. | 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 | 2.26 | 1.79 | 1.67 | 1.80 | |||||||
| Microsoft Corp. | 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 | 2.52 | 2.90 | 2.80 | 2.85 | |||||||
| Oracle Corp. | 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 | 3.03 | 2.12 | 2.37 | 2.25 | |||||||
| Palantir Technologies Inc. | 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 | 4.34 | 4.13 | 3.90 | 3.88 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 1.91 | 1.29 | 1.78 | 1.78 | |||||||
| Salesforce Inc. | 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 | 1.08 | 1.05 | 0.97 | 0.96 | |||||||
| ServiceNow Inc. | 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 | 1.21 | 1.40 | 1.17 | 1.03 | |||||||
| Synopsys Inc. | 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. | 2.04 | 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 | 1.04 | 1.19 | 0.81 | 1.09 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,644,676 ÷ 1,353,192 = 3.43
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a general upward trend over the observed periods, starting from approximately 933 million US dollars in March 2020 and increasing to over 4.64 billion US dollars by June 2025. Some fluctuations appear within this growth trajectory, particularly the substantial rise from March 2024 to March 2025, where current assets increase from roughly 3.79 billion to nearly 5.08 billion US dollars. This suggests expanding liquidity or accumulation of short-term resources over time, with particularly strong growth noted in the recent periods.
- Current Liabilities
- Current liabilities also increase throughout the timeline but with some volatility. Initially, liabilities rise steadily from around 211 million US dollars in March 2020 to a peak near 1.86 billion US dollars in June 2024. Following this peak, a significant decrease is observed in the last reported period, dropping to approximately 1.35 billion US dollars by June 2025. The substantial increase in liabilities up to mid-2024, followed by a notable reduction, may indicate changes in the company’s short-term obligations or payment strategies, affecting financial risk and liquidity management.
- Current Ratio
- The current ratio, calculated as current assets divided by current liabilities, starts very high at 4.43 in March 2020, reaching a peak of 6.74 in June 2020. Subsequently, the ratio declines steadily through 2021, stabilizing between approximately 3.0 and 3.5 during 2022 and 2023, before dropping to its lowest point around 2.0 in March and June of 2024. Thereafter, the ratio rebounds to about 3.43 by June 2025. These fluctuations indicate that, despite growing current liabilities, the company has generally maintained a comfortable liquidity buffer above the common benchmark of 1.0. The dip in 2024 suggests a period of tighter liquidity or increased short-term liabilities relative to assets, but the recovery by mid-2025 points to an improvement in short-term financial stability.
Quick Ratio
Datadog Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 489,030) | 1,079,854) | 1,246,983) | 337,418) | 410,963) | 282,218) | 330,339) | 261,309) | 291,304) | 222,548) | 338,985) | 294,815) | 238,859) | 271,686) | 270,973) | 286,966) | 247,442) | 369,706) | 224,927) | 198,523) | 206,202) | 194,350) | |||||||
| Marketable securities | 3,421,940) | 3,369,820) | 2,942,076) | 2,861,536) | 2,549,143) | 2,499,151) | 2,252,559) | 2,080,380) | 1,894,058) | 1,795,342) | 1,545,341) | 1,471,448) | 1,464,681) | 1,399,323) | 1,283,473) | 1,180,160) | 1,162,717) | 1,178,190) | 1,292,532) | 1,296,261) | 1,259,597) | 600,384) | |||||||
| Accounts receivable, net of allowance for credit losses | 604,174) | 490,172) | 598,919) | 487,064) | 533,292) | 451,057) | 509,279) | 400,649) | 333,102) | 367,046) | 399,551) | 348,830) | 305,501) | 275,342) | 268,824) | 224,602) | 188,326) | 154,111) | 163,359) | 120,992) | 124,078) | 108,437) | |||||||
| Total quick assets | 4,515,144) | 4,939,846) | 4,787,978) | 3,686,018) | 3,493,398) | 3,232,426) | 3,092,177) | 2,742,338) | 2,518,464) | 2,384,936) | 2,283,877) | 2,115,093) | 2,009,041) | 1,946,351) | 1,823,270) | 1,691,728) | 1,598,485) | 1,702,007) | 1,680,818) | 1,615,776) | 1,589,877) | 903,171) | |||||||
| Current liabilities | 1,353,192) | 1,854,823) | 1,862,713) | 1,780,263) | 1,790,879) | 972,793) | 1,003,052) | 842,476) | 761,362) | 772,954) | 759,748) | 674,408) | 625,876) | 601,972) | 528,696) | 440,202) | 381,057) | 320,814) | 297,844) | 254,650) | 241,408) | 210,638) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 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 | 5.64 | 6.35 | 6.59 | 4.29 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 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 | 1.29 | 1.25 | 1.25 | 1.28 | |||||||
| Adobe Inc. | 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 | |||||||
| Cadence Design Systems Inc. | 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 | 1.59 | 1.44 | 1.30 | 1.22 | |||||||
| CrowdStrike Holdings Inc. | 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 | 2.18 | 2.36 | 2.76 | 0.87 | |||||||
| Fair Isaac Corp. | 1.86 | 1.62 | 1.52 | 1.76 | 1.92 | 1.22 | 1.43 | 1.39 | 1.28 | 1.26 | 1.37 | 1.15 | 1.17 | 1.31 | 0.91 | 0.95 | 0.92 | 1.16 | 1.19 | 0.93 | 0.87 | 0.89 | |||||||
| International Business Machines Corp. | 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 | 0.83 | 0.88 | 0.88 | 0.80 | |||||||
| Intuit Inc. | 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 | 2.04 | 1.54 | 1.30 | 1.34 | |||||||
| Microsoft Corp. | 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 | 2.33 | 2.73 | 2.65 | 2.68 | |||||||
| Oracle Corp. | 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 | 2.83 | 1.91 | 2.16 | 2.09 | |||||||
| Palantir Technologies Inc. | 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 | 4.11 | 3.90 | 3.79 | 3.73 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 1.78 | 1.16 | 1.64 | 1.64 | |||||||
| Salesforce Inc. | 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 | 0.95 | 0.87 | 0.82 | 0.81 | |||||||
| ServiceNow Inc. | 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 | 1.16 | 1.33 | 1.11 | 0.98 | |||||||
| Synopsys Inc. | 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. | 1.92 | 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 | 0.95 | 1.09 | 0.74 | 1.00 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,515,144 ÷ 1,353,192 = 3.34
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit a generally upward trend over the period under review. Starting from approximately 903 million US dollars in March 2020, the figure more than doubled by the end of 2021, reaching about 1.82 billion US dollars. This growth continued steadily, with notable acceleration starting in late 2023 through early 2025, where total quick assets increased significantly to around 4.9 billion US dollars in mid-2025. The data indicate consistent accumulation of liquid assets or assets easily convertible into cash.
- Current Liabilities
- Current liabilities show a rising trajectory overall but with more pronounced volatility compared to quick assets. From about 211 million US dollars in March 2020, current liabilities gradually increased, peaking near 1.0 billion US dollars by the end of 2023. Afterward, the figures fluctuate with a substantial surge to over 1.79 billion US dollars and a peak of approximately 1.86 billion US dollars in mid-2025, followed by a notable reduction to about 1.35 billion US dollars in the subsequent quarter. This pattern suggests periods of increased short-term obligations, possibly from operational or financing activities, accompanied by some variability in management of short-term debts.
- Quick Ratio
- The quick ratio began at a very strong level of 4.29 in March 2020 and peaked at 6.59 in June 2020, indicating a highly liquid position. From mid-2020 through the end of 2021, the ratio displayed a gradual decline, reaching about 3.45, reflecting a relative tightening of liquidity as current liabilities increased faster than quick assets. This decline continued more moderately through 2022 and early 2023, stabilizing near 3.0. Starting in mid-2023, the quick ratio fluctuated between roughly 3.0 and 3.3 before decreasing sharply to around 2.0 by the end of 2024. The subsequent quarters showed recovery, with the ratio climbing to over 3.3 in mid-2025. Overall, despite fluctuations, the quick ratio remained above 2.0 throughout most of the period, indicating maintained liquidity capacity above the standard benchmark of 1.0, though the downward trend near the end of 2024 suggests increased short-term financial pressure during that time.
- Summary Insights
- The interplay between quick assets and current liabilities demonstrates that although total quick assets increased steadily and substantially, current liabilities expanded at a faster pace in certain periods, especially from late 2023 onwards. This dynamic put pressure on liquidity ratios, reflected in the declining quick ratio toward the end of 2024. The company appeared to manage liquidity effectively with quick ratios consistently above 2.0, signaling reasonable short-term financial health despite the increasing liabilities. The later recovery in the quick ratio suggests corrective actions or improved asset liquidity following the peak in current liabilities. Overall, the financial data portray growth in liquid assets accompanied by increasing short-term liabilities, necessitating close monitoring of liquidity management to sustain financial stability.
Cash Ratio
Datadog Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 489,030) | 1,079,854) | 1,246,983) | 337,418) | 410,963) | 282,218) | 330,339) | 261,309) | 291,304) | 222,548) | 338,985) | 294,815) | 238,859) | 271,686) | 270,973) | 286,966) | 247,442) | 369,706) | 224,927) | 198,523) | 206,202) | 194,350) | |||||||
| Marketable securities | 3,421,940) | 3,369,820) | 2,942,076) | 2,861,536) | 2,549,143) | 2,499,151) | 2,252,559) | 2,080,380) | 1,894,058) | 1,795,342) | 1,545,341) | 1,471,448) | 1,464,681) | 1,399,323) | 1,283,473) | 1,180,160) | 1,162,717) | 1,178,190) | 1,292,532) | 1,296,261) | 1,259,597) | 600,384) | |||||||
| Total cash assets | 3,910,970) | 4,449,674) | 4,189,059) | 3,198,954) | 2,960,106) | 2,781,369) | 2,582,898) | 2,341,689) | 2,185,362) | 2,017,890) | 1,884,326) | 1,766,263) | 1,703,540) | 1,671,009) | 1,554,446) | 1,467,126) | 1,410,159) | 1,547,896) | 1,517,459) | 1,494,784) | 1,465,799) | 794,734) | |||||||
| Current liabilities | 1,353,192) | 1,854,823) | 1,862,713) | 1,780,263) | 1,790,879) | 972,793) | 1,003,052) | 842,476) | 761,362) | 772,954) | 759,748) | 674,408) | 625,876) | 601,972) | 528,696) | 440,202) | 381,057) | 320,814) | 297,844) | 254,650) | 241,408) | 210,638) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 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 | 5.09 | 5.87 | 6.07 | 3.77 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 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 | 0.67 | 0.54 | 0.49 | 0.52 | |||||||
| Adobe Inc. | 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 | |||||||
| Cadence Design Systems Inc. | 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 | 1.17 | 1.17 | 1.03 | 0.93 | |||||||
| CrowdStrike Holdings Inc. | 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 | 1.85 | 2.01 | 2.42 | 0.58 | |||||||
| Fair Isaac Corp. | 0.43 | 0.56 | 0.40 | 0.46 | 0.43 | 0.37 | 0.37 | 0.41 | 0.37 | 0.39 | 0.40 | 0.40 | 0.46 | 0.50 | 0.35 | 0.44 | 0.40 | 0.37 | 0.38 | 0.27 | 0.23 | 0.25 | |||||||
| International Business Machines Corp. | 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 | 0.36 | 0.41 | 0.37 | 0.30 | |||||||
| Intuit Inc. | 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 | 2.00 | 1.46 | 1.03 | 1.28 | |||||||
| Microsoft Corp. | 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 | 1.89 | 2.34 | 2.25 | 2.35 | |||||||
| Oracle Corp. | 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 | 2.50 | 1.64 | 1.88 | 1.89 | |||||||
| Palantir Technologies Inc. | 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 | 3.83 | 3.64 | 3.43 | 3.50 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 1.39 | 0.87 | 1.40 | 1.39 | |||||||
| Salesforce Inc. | 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 | 0.54 | 0.62 | 0.59 | 0.61 | |||||||
| ServiceNow Inc. | 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 | 0.83 | 1.04 | 0.82 | 0.68 | |||||||
| Synopsys Inc. | 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. | 1.63 | 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 | 0.65 | 0.84 | 0.56 | 0.77 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,910,970 ÷ 1,353,192 = 2.89
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets show a significant overall upward trend from March 31, 2020 to June 30, 2025. Starting at approximately $795 million in early 2020, the cash reserves increased steadily with occasional fluctuations. Notably, after surpassing the $2 billion mark in early 2023, the growth accelerated, reaching highs above $4 billion by late 2024. Despite some periods of slower growth or slight declines, the long-term trajectory indicates consistent accumulation of cash resources.
- Current Liabilities
- Current liabilities exhibited a generally increasing trend throughout the analyzed period, starting at about $211 million in early 2020 and rising to over $1.8 billion by mid-2025. This increase was accompanied by notable volatility, especially after mid-2023, when liabilities spiked sharply to nearly $1.8 billion and fluctuated in the following quarters. While the general tendency is upward, the irregular spikes suggest periods of elevated short-term obligations or operational changes influencing liabilities.
- Cash Ratio
- The cash ratio, reflecting liquidity by comparing cash assets to current liabilities, declined markedly from a high of over 6 in mid-2020 to values around 2.5-3 during most of 2021 and early 2022. From 2023 onward, the ratio fluctuated between approximately 1.6 and 2.9, indicating a reduction in liquidity relative to liabilities compared to the earlier period. Despite this decline, the cash ratio remained above 1, signifying that cash assets consistently covered current liabilities. The downward trend and fluctuations reflect the more rapid growth of current liabilities compared to cash assets in recent years.