Current Ratio
since 2005
Calculation
Yahoo! Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 6.31 | = | 8,126,160) | ÷ | 1,287,424) |
| Dec 31, 2015 | 5.88 | = | 7,507,319) | ÷ | 1,277,380) |
| Dec 31, 2014 | 2.14 | = | 9,699,107) | ÷ | 4,528,581) |
| Dec 31, 2013 | 3.75 | = | 5,025,857) | ÷ | 1,340,312) |
| Dec 31, 2012 | 4.38 | = | 5,652,713) | ÷ | 1,290,232) |
| Dec 31, 2011 | 2.86 | = | 3,452,536) | ÷ | 1,207,361) |
| Dec 31, 2010 | 2.67 | = | 4,345,548) | ÷ | 1,625,872) |
| Dec 31, 2009 | 2.67 | = | 4,594,772) | ÷ | 1,717,728) |
| Dec 31, 2008 | 2.78 | = | 4,745,498) | ÷ | 1,705,015) |
| Dec 31, 2007 | 1.41 | = | 3,237,722) | ÷ | 2,300,448) |
| Dec 31, 2006 | 2.54 | = | 3,750,142) | ÷ | 1,473,994) |
| Dec 31, 2005 | 2.86 | = | 3,449,533) | ÷ | 1,204,052) |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
Between 2005 and 2016, the company's short-term liquidity position exhibited significant volatility, characterized by a general upward trend in current assets and fluctuating current liabilities. The current ratio, which measures the ability to cover short-term obligations, ranged from a low of 1.41 to a peak of 6.31 over the analyzed period.
- Early Period Liquidity (2005–2011)
- A notable decline in liquidity occurred in 2007, when the current ratio dropped to 1.41. This decrease was driven by a reduction in current assets to 3.24 billion US$ and a corresponding increase in current liabilities to 2.30 billion US$. A recovery followed in 2008, with the ratio returning to 2.78 and remaining relatively stable between 2.67 and 2.86 through 2011.
- Mid-Term Asset and Liability Shifts (2012–2014)
- A significant increase in the current ratio to 4.38 was observed in 2012, supported by current assets rising to 5.65 billion US$. However, 2014 presented a distinct anomaly: although current assets reached a period high of 9.70 billion US$, current liabilities simultaneously spiked to 4.53 billion US$, which compressed the current ratio to 2.14.
- Final Liquidity Expansion (2015–2016)
- The final two years of the period show a dramatic expansion of the liquidity margin. Current liabilities decreased sharply from the 2014 peak to approximately 1.29 billion US$ by 2016, while current assets remained robust at 8.13 billion US$. This divergence resulted in a substantial rise in the current ratio, reaching 5.88 in 2015 and peaking at 6.31 in 2016.
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Comparison to Competitors
Yahoo! Inc., current ratio, long-term trends, comparison to competitors
| Yahoo! Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | 6.31 | 1.35 | 2.08 | — | 1.20 | — | 1.21 | 0.72 | 2.35 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Dec 31, 2015 | 5.88 | 1.36 | 2.18 | — | 1.80 | — | 1.24 | 1.47 | 2.50 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
| Dec 31, 2014 | 2.14 | 1.46 | 1.85 | — | 1.33 | — | 1.25 | 1.84 | 2.50 | 3.35 | — | 2.75 | 0.67 | 1.79 | 1.09 | 4.80 |
| Dec 31, 2013 | 3.75 | 1.45 | 2.65 | — | 1.06 | — | 1.28 | 1.87 | 2.71 | 3.24 | — | 2.57 | 0.69 | 2.43 | 1.18 | 3.47 |
| Dec 31, 2012 | 4.38 | 1.55 | 3.41 | — | 1.14 | — | 1.13 | 1.20 | 2.60 | 2.60 | — | 3.13 | 0.72 | 1.99 | 0.91 | — |
| Dec 31, 2011 | 2.86 | 1.45 | 3.02 | — | 1.05 | — | 1.21 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Dec 31, 2010 | 2.67 | 1.46 | 3.01 | — | 1.26 | — | 1.19 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Dec 31, 2009 | 2.67 | 1.46 | 2.93 | — | 2.14 | — | 1.36 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Dec 31, 2008 | 2.78 | 1.34 | 3.59 | — | 1.69 | — | 1.15 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Dec 31, 2007 | 1.41 | 1.14 | 3.02 | — | 1.95 | — | 1.20 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Dec 31, 2006 | 2.54 | 1.26 | 4.26 | — | 2.39 | — | 1.11 | 1.79 | 2.18 | 1.73 | — | — | 1.29 | — | 1.03 | — |
| Dec 31, 2005 | 2.86 | 1.37 | 4.18 | — | 2.11 | — | 1.30 | 1.61 | 2.89 | 1.05 | — | — | 1.36 | — | 1.16 | — |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Yahoo! Inc., current ratio, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2016 | 6.31 | 2.03 |
| Dec 31, 2015 | 5.88 | 2.15 |
| Dec 31, 2014 | 2.14 | 2.01 |
| Dec 31, 2013 | 3.75 | 2.04 |
| Dec 31, 2012 | 4.38 | 1.84 |
| Dec 31, 2011 | 2.86 | 1.87 |
| Dec 31, 2010 | 2.67 | 1.61 |
| Dec 31, 2009 | 2.67 | 1.62 |
| Dec 31, 2008 | 2.78 | 1.36 |
| Dec 31, 2007 | 1.41 | 1.38 |
| Dec 31, 2006 | 2.54 | 1.53 |
| Dec 31, 2005 | 2.86 | 1.70 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Yahoo! Inc., current ratio, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2016 | 6.31 | 2.01 |
| Dec 31, 2015 | 5.88 | 2.04 |
| Dec 31, 2014 | 2.14 | 1.98 |
| Dec 31, 2013 | 3.75 | 2.20 |
| Dec 31, 2012 | 4.38 | 2.08 |
| Dec 31, 2011 | 2.86 | 2.12 |
| Dec 31, 2010 | 2.67 | 2.02 |
| Dec 31, 2009 | 2.67 | 2.04 |
| Dec 31, 2008 | 2.78 | 1.80 |
| Dec 31, 2007 | 1.41 | 1.79 |
| Dec 31, 2006 | 2.54 | 1.86 |
| Dec 31, 2005 | 2.86 | 2.02 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).