Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
- Current Ratio
- The current ratio fluctuated over the six-year period, starting at 1.85 in 2013 and slightly decreasing to 1.74 in 2014. It then increased significantly to 2.39 in 2015, followed by a moderate decline to 2.12 in 2016. Subsequently, the ratio showed a gradual upward trend, reaching 2.25 in 2017 and 2.35 in 2018. Overall, the current ratio indicated a generally strong liquidity position, with values consistently above 1.7, suggesting that short-term liabilities were well covered by current assets throughout the period.
- Quick Ratio
- The quick ratio exhibited notable variability, beginning at 1.44 in 2013 and dropping to 1.34 in 2014. A substantial improvement occurred in 2015 when the ratio rose sharply to 1.97. However, this gain was not maintained, as the ratio decreased to 1.51 in 2016 before gradually increasing again in the subsequent years, reaching 1.75 in 2017 and 1.79 in 2018. These figures imply a generally solid ability to meet short-term obligations without relying on inventory, although the interim decline suggests some fluctuations in liquid asset management.
- Cash Ratio
- The cash ratio demonstrated more pronounced fluctuations, beginning at 0.79 in 2013 and falling to 0.61 in 2014. This was followed by a considerable increase to 1.16 in 2015, indicating a peak in cash and cash equivalents relative to current liabilities. However, the ratio decreased again to 0.63 in 2016 and then steadily increased in the final two years to 0.85 in 2017 and 0.92 in 2018. The cash ratio values suggest variability in the most liquid assets held by the company, with periods of both conservative and more constrained cash positioning, but generally maintaining below 1, indicating that cash alone did not fully cover current liabilities.
Current Ratio
Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 19,333) | 16,286) | 14,949) | 17,376) | 15,376) | 15,567) | |
Current liabilities | 8,244) | 7,238) | 7,068) | 7,262) | 8,856) | 8,435) | |
Liquidity Ratio | |||||||
Current ratio1 | 2.35 | 2.25 | 2.12 | 2.39 | 1.74 | 1.85 | |
Benchmarks | |||||||
Current Ratio, Competitors2 | |||||||
Alphabet Inc. | — | — | — | — | — | — | |
Comcast Corp. | — | — | — | — | — | — | |
Meta Platforms Inc. | — | — | — | — | — | — | |
Netflix Inc. | — | — | — | — | — | — | |
Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
Walt Disney Co. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,333 ÷ 8,244 = 2.35
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibited a general upward trend over the examined period, starting at 15,567 million US dollars in mid-2013 and increasing to 19,333 million US dollars by mid-2018. There was a notable peak in 2015 at 17,376 million US dollars, followed by a slight dip in 2016 to 14,949 million US dollars before rising steadily again through 2018.
- Current Liabilities
- Current liabilities showed some fluctuations without a definitive trend. Beginning at 8,435 million US dollars in 2013, liabilities peaked at 8,856 million in 2014. Subsequently, there was a decline over the next two years to 7,068 million in 2016. Afterward, liabilities increased moderately, reaching 8,244 million by 2018.
- Current Ratio
- The current ratio, an indicator of short-term liquidity, reflected overall improvement during the period. It started at 1.85 in 2013, decreased slightly in 2014 to 1.74, then rose significantly to 2.39 in 2015. Although it dipped to 2.12 in 2016, the ratio increased again to 2.25 in 2017 and 2.35 in 2018. These fluctuations suggest an overall strengthening of the company’s capacity to cover short-term obligations from 2013 to 2018.
Quick Ratio
Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and cash equivalents | 7,622) | 6,163) | 4,424) | 8,428) | 5,415) | 6,659) | |
Receivables, net | 7,120) | 6,477) | 6,258) | 5,912) | 6,468) | 5,459) | |
Total quick assets | 14,742) | 12,640) | 10,682) | 14,340) | 11,883) | 12,118) | |
Current liabilities | 8,244) | 7,238) | 7,068) | 7,262) | 8,856) | 8,435) | |
Liquidity Ratio | |||||||
Quick ratio1 | 1.79 | 1.75 | 1.51 | 1.97 | 1.34 | 1.44 | |
Benchmarks | |||||||
Quick Ratio, Competitors2 | |||||||
Alphabet Inc. | — | — | — | — | — | — | |
Comcast Corp. | — | — | — | — | — | — | |
Meta Platforms Inc. | — | — | — | — | — | — | |
Netflix Inc. | — | — | — | — | — | — | |
Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
Walt Disney Co. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,742 ÷ 8,244 = 1.79
2 Click competitor name to see calculations.
- Total Quick Assets
-
The total quick assets demonstrate variability over the period analyzed. There was a slight decrease from 12,118 million US dollars in mid-2013 to 11,883 million in mid-2014. Subsequently, a notable increase occurred in mid-2015, reaching 14,340 million. This was followed by a decline in mid-2016 to 10,682 million, then a gradual recovery over the next two years, culminating at 14,742 million in mid-2018. The pattern suggests periods of both asset accumulation and reduction, with a recovery trend in the latest years.
- Current Liabilities
-
Current liabilities show a moderate increase from 8,435 million US dollars in mid-2013 to 8,856 million in mid-2014. A significant decrease is observed in mid-2015 and mid-2016, down to 7,262 million and 7,068 million respectively. From mid-2016 onwards, liabilities slightly increased but remained below earlier levels, ending at 8,244 million in mid-2018. This suggests improved short-term debt management or reduction in obligations during the mid-period, with a subsequent slight increase.
- Quick Ratio
-
The quick ratio fluctuated in line with the assets and liabilities movements. It started at 1.44 in mid-2013, decreased to 1.34 in mid-2014, indicating a tightening liquidity position. The ratio then improved significantly to 1.97 in mid-2015, reflecting a stronger ability to meet short-term obligations. A decline to 1.51 in mid-2016 was followed by a steady increase to 1.79 in mid-2018. Overall, the quick ratio remained above 1, demonstrating consistent coverage of current liabilities by liquid assets, with variability indicating changing liquidity management strategies.
Cash Ratio
Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cash and cash equivalents | 7,622) | 6,163) | 4,424) | 8,428) | 5,415) | 6,659) | |
Total cash assets | 7,622) | 6,163) | 4,424) | 8,428) | 5,415) | 6,659) | |
Current liabilities | 8,244) | 7,238) | 7,068) | 7,262) | 8,856) | 8,435) | |
Liquidity Ratio | |||||||
Cash ratio1 | 0.92 | 0.85 | 0.63 | 1.16 | 0.61 | 0.79 | |
Benchmarks | |||||||
Cash Ratio, Competitors2 | |||||||
Alphabet Inc. | — | — | — | — | — | — | |
Comcast Corp. | — | — | — | — | — | — | |
Meta Platforms Inc. | — | — | — | — | — | — | |
Netflix Inc. | — | — | — | — | — | — | |
Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
Walt Disney Co. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,622 ÷ 8,244 = 0.92
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit considerable fluctuations over the analyzed period. Initially, there is a decline from 6,659 million USD in 2013 to 5,415 million USD in 2014. This is followed by a significant increase to 8,428 million USD in 2015, which represents the peak within the period. However, the cash assets decline sharply again to 4,424 million USD in 2016. Subsequently, there is a recovery trend, with cash assets rising to 6,163 million USD in 2017 and further increasing to 7,622 million USD by 2018.
- Current liabilities
- Current liabilities remain relatively stable with slight variations over the years. They show a gradual increase from 8,435 million USD in 2013 to 8,856 million USD in 2014, before dropping to the lowest level of 7,262 million USD in 2015. The liabilities then slightly decrease further to 7,068 million USD in 2016, followed by a modest increase to 7,238 million USD in 2017 and a more pronounced rise to 8,244 million USD in 2018. Overall, the trend suggests moderate volatility without a clear directional pattern.
- Cash ratio
- The cash ratio displays notable volatility throughout the period. It decreases from 0.79 in 2013 to 0.61 in 2014, indicating a reduced coverage of current liabilities by cash and cash equivalents. The ratio then sharply increases to 1.16 in 2015, signaling an improvement in liquidity with cash assets exceeding current liabilities. However, this liquidity improvement is short-lived, as the ratio declines to 0.63 in 2016. The subsequent years see a gradual recovery in the cash ratio, rising to 0.85 in 2017 and reaching 0.92 in 2018, reflecting an enhanced ability to cover short-term obligations with cash resources.