Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Mastercard Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Mastercard Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Current ratio
- The current ratio shows an initial upward trend from 1.39 in 2018 to a peak of 1.61 in 2020, indicating a strengthening short-term liquidity position during this period. However, from 2020 onwards, the ratio declined consistently, reaching 1.17 by the end of 2022. This suggests a gradual reduction in current assets relative to current liabilities after 2020.
- Quick ratio
- The quick ratio follows a similar pattern as the current ratio, remaining stable at 1.27 in 2018 and 2019, then increasing to 1.45 in 2020. Post-2020, the quick ratio decreased steadily to 1.01 by 2022, reflecting a decreasing level of liquid assets (excluding inventory) to cover current liabilities, indicating slightly reduced immediate liquidity.
- Cash ratio
- The cash ratio displayed a fluctuating trend over the period. It started at 0.86 in 2018 and dipped slightly to 0.81 in 2019. A notable increase occurred in 2020, with the ratio rising to 1.09, indicating a strong cash position relative to current liabilities during this year. After 2020, the cash ratio decreased again to 0.79 in 2021 and further to 0.67 in 2022, highlighting a reduction in cash reserves relative to short-term obligations in recent years.
Current Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Accenture PLC | ||||||
Adobe Inc. | ||||||
Cadence Design Systems Inc. | ||||||
CrowdStrike Holdings Inc. | ||||||
Fair Isaac Corp. | ||||||
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. | ||||||
Current Ratio, Sector | ||||||
Software & Services | ||||||
Current Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets initially increased from 16,171 million US dollars at the end of 2018 to a peak of 19,113 million US dollars by the end of 2020. Following this peak, a declining trend is observed, with current assets decreasing to 16,949 million in 2021 and further to 16,606 million by the end of 2022.
- Current Liabilities
- Current liabilities show a consistent upward trend over the five-year period. They rose from 11,593 million US dollars in 2018 to 14,171 million US dollars at the end of 2022, with a steady increase across the years, including a notable jump between 2020 and 2021.
- Current Ratio
- The current ratio exhibited a mixed trend. It improved from 1.39 in 2018 to a peak of 1.61 in 2020, indicating enhanced short-term liquidity. However, since 2020, the ratio has declined, reaching 1.17 by the end of 2022. This decline is attributable to the decrease in current assets coupled with the increase in current liabilities, signaling a reduction in the company's short-term liquidity position over the last two years of the period examined.
Quick Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Restricted cash for litigation settlement | ||||||
Investments | ||||||
Accounts receivable | ||||||
Settlement assets | ||||||
Restricted security deposits held for customers | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Accenture PLC | ||||||
Adobe Inc. | ||||||
Cadence Design Systems Inc. | ||||||
CrowdStrike Holdings Inc. | ||||||
Fair Isaac Corp. | ||||||
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. | ||||||
Quick Ratio, Sector | ||||||
Software & Services | ||||||
Quick Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a general increase from 2018 to 2020, rising from 14,739 million US dollars to 17,230 million US dollars. However, there was a subsequent decline in 2021 and 2022, with values dropping to 14,678 million and 14,260 million US dollars respectively. This suggests a peak in liquid assets in 2020 followed by a reduction over the next two years.
- Current Liabilities
- Current liabilities exhibited an upward trend throughout the observed period. Starting at 11,593 million US dollars in 2018, liabilities increased consistently each year, reaching 14,171 million US dollars by the end of 2022. The steady rise indicates growing short-term obligations over the timeframe.
- Quick Ratio
- The quick ratio showed a fluctuating downward trend overall. It maintained stability at 1.27 in both 2018 and 2019, increased to 1.45 in 2020, but then declined significantly in the subsequent years to 1.12 in 2021 and further down to 1.01 in 2022. This pattern indicates strengthening immediate liquidity in 2020 followed by a decreasing ability to cover current liabilities with the most liquid assets.
- Overall Analysis
- Despite the peak in quick assets in 2020, the concurrent increase in current liabilities and the decline in the quick ratio in the following years may suggest deteriorating short-term financial health. The quick ratio nearing 1.0 in 2022 indicates that the company's liquid assets are almost just sufficient to meet its current liabilities, highlighting potential concerns about liquidity risk.
Cash Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Restricted cash for litigation settlement | ||||||
Investments | ||||||
Restricted security deposits held for customers | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Accenture PLC | ||||||
Adobe Inc. | ||||||
Cadence Design Systems Inc. | ||||||
CrowdStrike Holdings Inc. | ||||||
Fair Isaac Corp. | ||||||
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. | ||||||
Cash Ratio, Sector | ||||||
Software & Services | ||||||
Cash Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited fluctuations over the five-year period. Starting at $10,011 million in 2018, there was a decline to $9,630 million in 2019. This was followed by a significant increase to $12,878 million in 2020, after which the amount decreased again to $10,353 million in 2021 and further to $9,565 million in 2022. Overall, cash assets peaked in 2020 before trending downward over the subsequent two years.
- Current Liabilities
- Current liabilities showed a consistent upward trajectory across the examined periods. Starting at $11,593 million in 2018, current liabilities increased each year, reaching $14,171 million in 2022. This indicates a steady growth in the company's short-term obligations over the five years, with the total rising by approximately 22% from 2018 to 2022.
- Cash Ratio
- The cash ratio, which reflects the company's liquidity by comparing cash assets to current liabilities, demonstrated a downward trend over the period. The ratio began at 0.86 in 2018, decreased slightly to 0.81 in 2019, then increased above one to 1.09 in 2020. However, after this peak, the ratio steadily declined to 0.79 in 2021 and further to 0.67 in 2022. This pattern suggests that although liquidity temporarily improved in 2020, the ability to cover current liabilities with cash alone has generally weakened, reaching the lowest point in 2022 among the years analyzed.
- Summary
- Over the five years, the financial data reflects a variability in cash assets with a notable peak in 2020 followed by reductions, while current liabilities increased steadily year over year. Consequently, the cash ratio decreased overall, particularly after 2020, indicating a decline in the company's immediate liquidity position relative to its current liabilities. This trend might warrant attention to ensure that liquidity remains sufficient to meet short-term obligations in the future.