Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
The analysis of liquidity ratios over the periods from 2020 to 2025 reveals a general downward trend in the company's short-term financial health indicators.
- Current Ratio
- The current ratio decreased steadily from 2.26 in 2020 to 1.29 in 2024, with a slight increase to 1.36 projected in 2025. This decline indicates a reduction in the company's ability to cover its short-term liabilities with current assets, although the level remains above 1, suggesting positive working capital.
- Quick Ratio
- The quick ratio exhibits a sharper decline from 2.04 in 2020 to 0.71 in 2024, and a minor decrease to 0.63 projected in 2025. This more pronounced drop compared to the current ratio suggests a significant reduction in highly liquid assets relative to current liabilities, potentially indicating increased inventory levels or less cash and receivables available to cover immediate obligations.
- Cash Ratio
- The cash ratio shows the most substantial decrease from 2.00 in 2020 down to 0.54 in 2024, with a further decline projected to 0.44 in 2025. This indicates a marked reduction in the most liquid assets (cash and cash equivalents) available to meet short-term liabilities, which may raise concerns about liquidity under stressed conditions.
Overall, the declining trends across all three liquidity ratios suggest increasing liquidity risk, with a notable reduction in cash reserves and quick assets. The company may need to monitor its liquidity management strategies carefully to ensure adequate coverage of short-term obligations in forthcoming periods.
Current Ratio
Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 14,107) | 9,678) | 5,557) | 5,047) | 5,157) | 7,980) | |
Current liabilities | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | 3,529) | |
Liquidity Ratio | |||||||
Current ratio1 | 1.36 | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | |
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 | |
Cadence Design Systems Inc. | — | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | |
CrowdStrike Holdings Inc. | 1.77 | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | |
Datadog Inc. | — | 2.64 | 3.17 | 3.09 | 3.54 | 5.77 | |
Fair Isaac Corp. | — | 1.62 | 1.51 | 1.46 | 0.99 | 1.29 | |
International Business Machines Corp. | — | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 | |
Microsoft Corp. | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | |
Oracle Corp. | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | |
Palantir Technologies Inc. | — | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | |
Palo Alto Networks Inc. | 0.94 | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | |
Salesforce Inc. | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | |
ServiceNow Inc. | — | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | |
Synopsys Inc. | — | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | |
Workday Inc. | 1.90 | 1.97 | 1.75 | 1.03 | 1.12 | 1.04 | |
Current Ratio, Sector | |||||||
Software & Services | — | 1.20 | 1.40 | 1.43 | 1.68 | 1.92 | |
Current Ratio, Industry | |||||||
Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,107 ÷ 10,370 = 1.36
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibited a declining trend from 7,980 million US dollars in July 2020 to a low of 5,047 million US dollars in July 2022. Following this period, there was a notable recovery, with current assets increasing substantially to 9,678 million US dollars in July 2024 and further rising to 14,107 million US dollars in July 2025. This suggests a significant improvement in the company's short-term asset base over the latter years.
- Current Liabilities
- Current liabilities decreased from 3,529 million US dollars in July 2020 to 2,655 million US dollars in July 2021, before increasing again to 3,790 million US dollars in July 2023. From that point, there was a sharp rise in current liabilities to 7,491 million US dollars in July 2024 and a further increase to 10,370 million US dollars by July 2025. The rapid growth in current liabilities in the last two years indicates an expansion in short-term obligations.
- Current Ratio
- The current ratio declined from 2.26 in July 2020 to 1.39 in July 2022, reflecting a weakening liquidity position relative to current liabilities during this period. Although there was a slight improvement to 1.47 in July 2023, the ratio decreased again to 1.29 in July 2024 before experiencing a marginal increase to 1.36 in July 2025. Despite fluctuations, the current ratio remained below the initial level observed in 2020, suggesting that the company's ability to cover short-term liabilities with short-term assets has been under pressure, particularly in recent years.
- Overall Analysis
- The data reveals that while the company's current assets have grown significantly after 2022, current liabilities have increased at a faster pace, especially from 2023 onward. Consequently, the current ratio has declined from its initial high in 2020 and remained relatively low, demonstrating tighter short-term liquidity and potentially higher risk in meeting short-term obligations. The trends indicate the company has expanded its short-term assets but is also increasingly leveraged in the short term, necessitating careful management of working capital moving forward.
Quick Ratio
Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and cash equivalents | 2,884) | 3,609) | 2,848) | 2,796) | 2,562) | 6,442) | |
Investments | 1,668) | 465) | 814) | 485) | 1,308) | 608) | |
Accounts receivable, net of allowance for doubtful accounts | 530) | 457) | 405) | 446) | 391) | 149) | |
Notes receivable held for investment, net | 1,403) | 779) | 687) | 509) | 132) | —) | |
Notes receivable held for sale | —) | 3) | —) | —) | —) | —) | |
Total quick assets | 6,485) | 5,313) | 4,754) | 4,236) | 4,393) | 7,199) | |
Current liabilities | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | 3,529) | |
Liquidity Ratio | |||||||
Quick ratio1 | 0.63 | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | |
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 | |
Cadence Design Systems Inc. | — | 2.53 | 1.02 | 1.02 | 1.47 | 1.60 | |
CrowdStrike Holdings Inc. | 1.58 | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | |
Datadog Inc. | — | 2.57 | 3.08 | 3.01 | 3.45 | 5.64 | |
Fair Isaac Corp. | — | 1.52 | 1.43 | 1.37 | 0.91 | 1.19 | |
International Business Machines Corp. | — | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
Microsoft Corp. | 1.16 | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | |
Oracle Corp. | 0.61 | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | |
Palantir Technologies Inc. | — | 5.83 | 5.41 | 4.92 | 4.11 | 3.59 | |
Palo Alto Networks Inc. | 0.88 | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | |
Salesforce Inc. | 0.93 | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | |
ServiceNow Inc. | — | 1.02 | 1.00 | 1.06 | 1.01 | 1.16 | |
Synopsys Inc. | — | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | |
Workday Inc. | 1.80 | 1.87 | 1.66 | 0.96 | 1.07 | 0.95 | |
Quick Ratio, Sector | |||||||
Software & Services | — | 1.01 | 1.22 | 1.26 | 1.52 | 1.76 | |
Quick Ratio, Industry | |||||||
Information Technology | — | 0.96 | 1.12 | 1.09 | 1.30 | 1.47 |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,485 ÷ 10,370 = 0.63
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a notable decline from US$7,199 million in 2020 to US$4,393 million in 2021, representing a significant reduction in highly liquid assets. This downward trend continued slightly into 2022, reaching US$4,236 million, before beginning a recovery phase in 2023. From 2023 onwards, total quick assets consistently increased, climbing to US$4,754 million, then US$5,313 million in 2024, and reaching US$6,485 million by 2025. This pattern indicates an initial contraction in liquidity followed by a gradual and sustained strengthening of quick asset levels in the latter years.
- Current Liabilities
- Current liabilities exhibited volatility over the observed period. Initially, liabilities decreased significantly from US$3,529 million in 2020 to US$2,655 million in 2021. However, they increased again to US$3,630 million in 2022 and further to US$3,790 million in 2023. A sharp rise occurred between 2023 and 2024, with current liabilities more than doubling to US$7,491 million, followed by another pronounced increase to US$10,370 million in 2025. The marked growth in current liabilities over the last two years suggests a significant increase in short-term financial obligations.
- Quick Ratio
- The quick ratio, an indicator of the company's short-term liquidity, decreased steadily over the six-year period. Beginning at a ratio of 2.04 in 2020, it declined to 1.65 in 2021 and fell further to 1.17 in 2022. The ratio showed a slight improvement to 1.25 in 2023 but then dropped sharply to 0.71 in 2024 and further to 0.63 in 2025. Ratios below 1.0 in the last two years imply that the company’s quick assets were insufficient to cover current liabilities, indicating potential liquidity challenges despite the increase in quick assets.
Cash Ratio
Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and cash equivalents | 2,884) | 3,609) | 2,848) | 2,796) | 2,562) | 6,442) | |
Investments | 1,668) | 465) | 814) | 485) | 1,308) | 608) | |
Total cash assets | 4,552) | 4,074) | 3,662) | 3,281) | 3,870) | 7,050) | |
Current liabilities | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | 3,529) | |
Liquidity Ratio | |||||||
Cash ratio1 | 0.44 | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | |
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 | |
Cadence Design Systems Inc. | — | 2.03 | 0.72 | 0.66 | 1.13 | 1.17 | |
CrowdStrike Holdings Inc. | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | |
Datadog Inc. | — | 2.25 | 2.58 | 2.48 | 2.94 | 5.09 | |
Fair Isaac Corp. | — | 0.40 | 0.37 | 0.40 | 0.35 | 0.38 | |
International Business Machines Corp. | — | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 | |
Microsoft Corp. | 0.67 | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | |
Oracle Corp. | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | |
Palantir Technologies Inc. | — | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | |
Palo Alto Networks Inc. | 0.36 | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | |
Salesforce Inc. | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | |
ServiceNow Inc. | — | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | |
Synopsys Inc. | — | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | |
Workday Inc. | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | 0.65 | |
Cash Ratio, Sector | |||||||
Software & Services | — | 0.59 | 0.79 | 0.82 | 1.11 | 1.33 | |
Cash Ratio, Industry | |||||||
Information Technology | — | 0.57 | 0.71 | 0.67 | 0.89 | 1.06 |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,552 ÷ 10,370 = 0.44
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets displayed a significant decline from 7,050 million US dollars in 2020 to a low of 3,281 million in 2022. Following this decrease, there is a gradual recovery trend observed, with assets rising to 4,552 million by 2025. Despite the recovery, the total cash assets at the end of the period remain notably below the 2020 level.
- Current Liabilities
- Current liabilities exhibit a generally increasing trend over the analyzed period. Starting at 3,529 million in 2020, a decrease to 2,655 million was noted in 2021. However, from 2021 onwards, liabilities have escalated sharply, reaching 10,370 million by 2025. This sharp rise suggests an increasing short-term obligation burden on the company over time.
- Cash Ratio
- The cash ratio has experienced a consistent downward trend from 2.0 in 2020 to 0.44 in 2025. This ratio, which compares cash assets to current liabilities, indicates a reduction in liquidity coverage over the period. The drop from a ratio well above 1 in 2020 to below 0.5 by 2025 suggests a declining ability to cover current liabilities immediately with cash on hand.
In summary, the financial data reveals a decline and partial recovery in cash assets alongside a significant increase in current liabilities. The resulting decrease in the cash ratio points to a weakening liquidity position, with the company's cash reserves becoming increasingly insufficient to cover its short-term liabilities fully. This trend highlights potential liquidity risks and may warrant closer attention to cash management and liability controls in future periods.