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EMC Corp. (NYSE:EMC)

This company has been moved to the archive! The financial data has not been updated since August 8, 2016.

Current Ratio
since 2005

Microsoft Excel

Calculation

EMC Corp., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 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 millions

The liquidity position of the organization exhibited significant volatility between 2005 and 2015, characterized by an initial period of strong liquidity followed by a sharp contraction and a subsequent phase of stabilization at a lower threshold.

Initial Liquidity Strength (2005–2009)
During the early part of the analyzed period, the current ratio remained robust, consistently staying above 1.60. A peak was reached in 2007 with a ratio of 2.28, indicating a substantial cushion of current assets relative to short-term obligations. This period was marked by a steady increase in current assets, which grew from 6,574 million US$ in 2005 to 10,538 million US$ by 2009.
Liquidity Compression (2010)
A significant downturn in liquidity occurred in 2010, where the current ratio dropped sharply to 1.04. This decline was primarily driven by a substantial increase in current liabilities, which surged from 5,148 million US$ in 2009 to 9,378 million US$ in 2010, while current assets experienced a slight decrease during the same interval.
Stabilization Phase (2011–2015)
From 2011 through 2015, the current ratio stabilized within a narrower range, fluctuating between 1.12 and 1.46. Although a moderate recovery was observed, peaking at 1.46 in 2013, the ratio never returned to the levels seen prior to 2010. By the end of 2015, the ratio stood at 1.17, reflecting a leaner liquidity profile.
Comparative Growth of Assets and Liabilities
Over the eleven-year period, both current assets and current liabilities experienced overall growth. Current assets increased by approximately 129%, rising from 6,574 million US$ to 15,063 million US$. However, current liabilities grew more aggressively, increasing by approximately 250% from 3,674 million US$ to 12,885 million US$, which explains the long-term compression of the current ratio.

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Comparison to Competitors

EMC Corp., current ratio, long-term trends, comparison to competitors

Microsoft Excel
EMC Corp. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. Intel Corp. KLA Corp. Lam Research Corp. Marvell Technology Inc. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc.
Dec 31, 2015 1.17 1.65 3.66 2.44 3.37 2.58 3.90 2.38 5.25 2.20 6.38 3.62 2.77
Dec 31, 2014 1.34 1.90 5.38 2.47 3.77 1.73 5.12 3.02 4.36 2.13 5.95 3.73 2.92
Dec 31, 2013 1.46 1.78 9.59 2.31 4.30 2.36 5.05 2.70 4.25 2.16 4.89 3.75 2.92
Dec 31, 2012 1.18 1.62 8.94 2.25 4.89 2.43 4.83 3.09 5.22 2.57 4.20 2.95 2.40
Dec 31, 2011 1.12 1.82 8.35 3.71 3.98 2.15 4.17 4.79 5.79 2.35 3.42 2.70 2.24
Dec 31, 2010 1.04 2.15 5.41 2.34 1.92 3.39 3.67 3.14 4.35 2.34 3.16 2.22 3.56
Dec 31, 2009 2.05 1.93 6.44 2.93 1.36 2.79 4.25 3.51 3.81 1.77 2.78 4.47 3.85
Dec 31, 2008 2.04 1.07 3.67 2.26 — 2.54 3.19 3.01 2.58 2.36 2.99 5.12 3.78
Dec 31, 2007 2.28 1.45 3.61 2.78 — 2.79 3.03 2.11 1.90 2.58 3.18 3.91 3.42
Dec 31, 2006 1.68 1.39 6.13 2.50 — 2.15 3.53 3.01 4.51 3.07 3.53 4.96 3.78
Dec 31, 2005 1.79 1.95 4.56 5.35 — 2.30 3.44 3.28 4.74 2.99 3.10 7.28 3.92

Based on: 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 (Semiconductors & Semiconductor Equipment)

EMC Corp., current ratio, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel
EMC Corp. Semiconductors & Semiconductor Equipment
Dec 31, 2015 1.17 2.86
Dec 31, 2014 1.34 2.61
Dec 31, 2013 1.46 2.89
Dec 31, 2012 1.18 2.80
Dec 31, 2011 1.12 2.73
Dec 31, 2010 1.04 2.92
Dec 31, 2009 2.05 3.02
Dec 31, 2008 2.04 2.79
Dec 31, 2007 2.28 2.78
Dec 31, 2006 1.68 2.74
Dec 31, 2005 1.79 3.23

Based on: 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)

EMC Corp., current ratio, long-term trends, comparison to industry (information technology)

Microsoft Excel
EMC Corp. Information Technology
Dec 31, 2015 1.17 2.04
Dec 31, 2014 1.34 1.98
Dec 31, 2013 1.46 2.20
Dec 31, 2012 1.18 2.08
Dec 31, 2011 1.12 2.12
Dec 31, 2010 1.04 2.02
Dec 31, 2009 2.05 2.04
Dec 31, 2008 2.04 1.80
Dec 31, 2007 2.28 1.79
Dec 31, 2006 1.68 1.86
Dec 31, 2005 1.79 2.02

Based on: 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).