Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Oracle Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
The liquidity profile exhibits a significant cyclical shift over the analyzed period, characterized by an initial phase of strong solvency followed by a prolonged period of liquidity compression and a subsequent volatile recovery.
- Current Ratio
- A sharp decline is observed from a peak of 2.04 in August 2021 to 0.60 by August 2022. For the majority of the period between August 2022 and November 2024, the ratio remained below the 1.0 threshold, indicating that current liabilities exceeded current assets. A recovery trend emerged in February 2025, with the ratio peaking at 1.35 in February 2026 before stabilizing at 1.17 by August 2026.
- Quick Ratio
- The quick ratio mirrors the trajectory of the current ratio, descending from 1.90 in August 2021 to a low of 0.49 in August 2022. This ratio remained suppressed for several years, frequently fluctuating between 0.50 and 0.80. An upward movement is evident toward the end of the sequence, reaching 1.22 in February 2026, which suggests an improved capacity to meet short-term obligations without relying on inventory liquidation.
- Cash Ratio
- The cash ratio displays the most pronounced volatility, dropping from 1.70 in August 2021 to 0.27 by November 2022. Throughout the middle period, the ratio fluctuated significantly, reaching a low of 0.28 in August 2025. A sharp increase to 0.96 was recorded in February 2026, followed by a moderate decline to 0.78 by August 2026, reflecting substantial shifts in the cash and cash-equivalent positions relative to current liabilities.
The analysis indicates a recurring pattern of liquidity contraction followed by strategic restoration. The strong correlation between the three ratios suggests that the overall liquidity position is driven by systemic changes in the balance sheet structure rather than isolated fluctuations in specific asset classes. The return of these ratios to levels closer to or above 1.0 in the final quarters suggests a strengthened short-term financial position relative to the 2022-2024 window.
AI Ask an analyst for more
Current Ratio
Oracle Corp., current ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 55,630) | 46,567) | 54,874) | 34,366) | 24,634) | 24,579) | 30,116) | 23,503) | 23,072) | 22,554) | 21,063) | 19,289) | 22,166) | 21,004) | 18,696) | 17,561) | 21,004) | 31,633) | 31,675) | 31,078) | 47,117) | |||||||
| Current liabilities | 47,514) | 41,764) | 40,737) | 37,795) | 39,874) | 32,643) | 29,623) | 29,052) | 32,045) | 31,544) | 24,885) | 24,407) | 25,357) | 23,090) | 22,880) | 27,106) | 34,819) | 19,511) | 20,833) | 18,881) | 23,071) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 1.17 | 1.12 | 1.35 | 0.91 | 0.62 | 0.75 | 1.02 | 0.81 | 0.72 | 0.72 | 0.85 | 0.79 | 0.87 | 0.91 | 0.82 | 0.65 | 0.60 | 1.62 | 1.52 | 1.65 | 2.04 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 1.34 | 1.34 | 1.41 | 1.42 | 1.46 | 1.48 | 1.47 | 1.10 | 1.16 | 1.26 | 1.33 | 1.30 | 1.37 | 1.29 | 1.26 | 1.23 | 1.27 | 1.23 | 1.22 | |||||||
| Adobe Inc. | — | — | — | 0.75 | 0.91 | 1.00 | 1.02 | 0.99 | 1.18 | 1.07 | 1.11 | 1.16 | 1.05 | 1.34 | 1.25 | 1.16 | 1.12 | 1.11 | 1.14 | 1.07 | 1.04 | |||||||
| AppLovin Corp. | — | — | — | 4.30 | 3.24 | 3.32 | 3.25 | 2.74 | 1.68 | 2.19 | 2.41 | 2.28 | 2.11 | 1.71 | 1.61 | 2.87 | 3.31 | 3.35 | 3.36 | 2.82 | 2.93 | |||||||
| Cadence Design Systems Inc. | — | — | — | 1.74 | 1.47 | 2.86 | 3.05 | 2.82 | 3.07 | 2.93 | 2.45 | 1.43 | 1.32 | 1.24 | 1.44 | 1.37 | 1.44 | 1.27 | 1.33 | 1.59 | 1.81 | |||||||
| Datadog Inc. | — | — | — | 3.20 | 3.40 | 3.38 | 3.66 | 3.43 | 2.74 | 2.64 | 2.13 | 2.01 | 3.43 | 3.17 | 3.35 | 3.42 | 3.19 | 3.09 | 3.23 | 3.31 | 3.33 | |||||||
| International Business Machines Corp. | — | — | — | 0.79 | 0.80 | 0.96 | 0.93 | 0.91 | 1.01 | 1.04 | 1.06 | 1.12 | 1.13 | 0.96 | 0.91 | 1.06 | 1.16 | 0.92 | 0.95 | 0.88 | 0.92 | |||||||
| Intuit Inc. | — | 1.51 | 1.45 | 1.32 | 1.39 | 1.36 | 1.45 | 1.27 | 1.24 | 1.29 | 1.50 | 1.17 | 1.25 | 1.47 | 1.51 | 1.23 | 1.37 | 1.39 | 1.63 | 1.18 | 2.10 | |||||||
| Microsoft Corp. | — | 1.23 | 1.28 | 1.39 | 1.40 | 1.35 | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 1.22 | 1.66 | 1.77 | 1.91 | 1.93 | 1.84 | 1.78 | 1.99 | 2.25 | 2.16 | |||||||
| Palantir Technologies Inc. | — | — | — | 7.23 | 6.91 | 7.11 | 6.43 | 6.32 | 6.49 | 5.96 | 5.67 | 5.92 | 5.91 | 5.55 | 5.53 | 5.22 | 5.41 | 5.17 | 4.28 | 4.36 | 4.38 | |||||||
| Palo Alto Networks Inc. | — | 0.87 | 0.86 | 1.04 | 0.99 | 0.94 | 0.90 | 0.84 | 0.84 | 0.89 | 0.84 | 0.83 | 0.86 | 0.78 | 0.74 | 0.64 | 0.70 | 0.77 | 0.74 | 0.66 | 0.68 | |||||||
| Salesforce Inc. | 0.79 | 0.76 | 0.98 | 1.12 | 1.07 | 1.06 | 1.11 | 1.04 | 1.11 | 1.09 | 1.04 | 1.02 | 1.02 | 1.02 | 1.05 | 1.06 | 1.03 | 1.05 | 1.06 | 0.93 | 1.33 | |||||||
| ServiceNow Inc. | — | — | — | 0.70 | 0.84 | 1.00 | 1.06 | 1.09 | 1.12 | 1.10 | 1.13 | 1.12 | 1.05 | 1.06 | 1.08 | 1.14 | 1.17 | 1.11 | 1.24 | 1.12 | 1.12 | |||||||
| Synopsys Inc. | — | — | 1.34 | 1.43 | 1.36 | 1.62 | 1.62 | 7.02 | 2.68 | 2.44 | 2.02 | 1.86 | 1.29 | 1.15 | 1.20 | 1.15 | 1.11 | 1.09 | 1.14 | 1.25 | 1.19 | |||||||
| Workday Inc. | 1.01 | 1.32 | 1.83 | 2.10 | 2.07 | 1.90 | 2.05 | 2.04 | 2.00 | 1.97 | 2.13 | 2.00 | 1.95 | 1.75 | 1.87 | 1.61 | 1.56 | 1.03 | 1.10 | 1.04 | 0.93 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 55,630 ÷ 47,514 = 1.17
2 Click competitor name to see calculations.
An analysis of the liquidity position reveals a cyclical trend in the ability to meet short-term obligations, characterized by an initial period of strong liquidity, a prolonged contraction, and a subsequent recovery toward the end of the period.
- Current Ratio Volatility and Decline
- A significant contraction in liquidity is observed between August 2021 and August 2022, where the current ratio fell from 2.04 to 0.60. This downturn was precipitated by a substantial reduction in current assets, which decreased from 47,117 million to 21,004 million, coupled with a rise in current liabilities that peaked at 34,819 million during the same timeframe.
- Period of Sustained Liquidity Pressure
- From August 2022 through November 2024, the liquidity position remained under pressure, with the current ratio consistently remaining below the 1.00 threshold. Throughout this phase, the ratio fluctuated between 0.60 and 0.91, indicating a persistent state where current liabilities exceeded current assets. This suggests a period of aggressive liability management or a strategic reduction in liquid reserves.
- Recovery and Asset Expansion
- A reversal of the downward trend began in February 2025, as the current ratio rose to 1.02. Following a brief dip in mid-2025, a strong recovery is evident, peaking at 1.35 in February 2026 and ending at 1.17 in August 2026. This improvement is primarily driven by a sharp increase in current assets, which reached 55,630 million by the end of the period, effectively offsetting the growth in current liabilities to 47,514 million.
AI Ask an analyst for more
Quick Ratio
Oracle Corp., quick ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 36,369) | 31,289) | 38,455) | 19,241) | 10,445) | 10,786) | 17,406) | 10,941) | 10,616) | 10,454) | 9,481) | 8,244) | 11,613) | 9,765) | 8,219) | 6,813) | 10,448) | 21,383) | 22,682) | 17,938) | 23,059) | |||||||
| Marketable securities | 708) | 605) | 677) | 525) | 560) | 417) | 417) | 370) | 295) | 207) | 423) | 446) | 470) | 422) | 550) | 537) | 772) | 519) | 707) | 4,900) | 16,251) | |||||||
| Trade receivables, net of allowances for credit losses | 11,394) | 10,385) | 10,719) | 9,440) | 8,843) | 8,558) | 8,051) | 8,177) | 8,021) | 7,874) | 7,297) | 6,804) | 6,519) | 6,915) | 6,213) | 6,197) | 5,937) | 5,953) | 4,588) | 4,462) | 4,482) | |||||||
| Total quick assets | 48,471) | 42,279) | 49,851) | 29,206) | 19,848) | 19,761) | 25,874) | 19,488) | 18,932) | 18,535) | 17,201) | 15,494) | 18,602) | 17,102) | 14,982) | 13,547) | 17,157) | 27,855) | 27,977) | 27,300) | 43,792) | |||||||
| Current liabilities | 47,514) | 41,764) | 40,737) | 37,795) | 39,874) | 32,643) | 29,623) | 29,052) | 32,045) | 31,544) | 24,885) | 24,407) | 25,357) | 23,090) | 22,880) | 27,106) | 34,819) | 19,511) | 20,833) | 18,881) | 23,071) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.02 | 1.01 | 1.22 | 0.77 | 0.50 | 0.61 | 0.87 | 0.67 | 0.59 | 0.59 | 0.69 | 0.63 | 0.73 | 0.74 | 0.65 | 0.50 | 0.49 | 1.43 | 1.34 | 1.45 | 1.90 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 1.21 | 1.20 | 1.29 | 1.30 | 1.32 | 1.33 | 1.33 | 0.98 | 1.03 | 1.13 | 1.18 | 1.18 | 1.24 | 1.15 | 1.12 | 1.12 | 1.14 | 1.10 | 1.10 | |||||||
| Adobe Inc. | — | — | — | 0.63 | 0.79 | 0.88 | 0.87 | 0.82 | 1.03 | 0.95 | 0.97 | 1.02 | 0.93 | 1.22 | 1.12 | 1.03 | 1.00 | 1.00 | 1.01 | 0.93 | 0.89 | |||||||
| AppLovin Corp. | — | — | — | 4.17 | 3.16 | 3.23 | 3.05 | 2.54 | 1.51 | 2.04 | 2.25 | 2.10 | 1.93 | 1.54 | 1.47 | 2.61 | 3.04 | 3.08 | 2.96 | 2.55 | 2.67 | |||||||
| Cadence Design Systems Inc. | — | — | — | 1.36 | 1.13 | 2.41 | 2.49 | 2.33 | 2.58 | 2.43 | 2.00 | 1.06 | 0.96 | 0.94 | 1.10 | 1.10 | 1.19 | 1.02 | 1.13 | 1.36 | 1.56 | |||||||
| Datadog Inc. | — | — | — | 3.10 | 3.28 | 3.28 | 3.55 | 3.34 | 2.66 | 2.57 | 2.07 | 1.95 | 3.32 | 3.08 | 3.26 | 3.31 | 3.09 | 3.01 | 3.14 | 3.21 | 3.23 | |||||||
| International Business Machines Corp. | — | — | — | 0.62 | 0.65 | 0.83 | 0.78 | 0.77 | 0.86 | 0.90 | 0.89 | 0.95 | 0.98 | 0.82 | 0.74 | 0.90 | 0.99 | 0.76 | 0.75 | 0.68 | 0.73 | |||||||
| Intuit Inc. | — | 0.93 | 0.76 | 0.67 | 0.78 | 0.63 | 0.85 | 0.68 | 0.54 | 0.71 | 1.00 | 0.55 | 0.66 | 1.25 | 1.29 | 1.02 | 1.10 | 1.17 | 1.29 | 0.78 | 1.71 | |||||||
| Microsoft Corp. | — | 0.93 | 1.01 | 1.12 | 1.15 | 1.16 | 1.15 | 1.10 | 1.06 | 1.06 | 1.05 | 1.02 | 1.45 | 1.54 | 1.66 | 1.66 | 1.59 | 1.57 | 1.77 | 2.05 | 1.96 | |||||||
| Palantir Technologies Inc. | — | — | — | 7.09 | 6.82 | 6.99 | 6.31 | 6.19 | 6.36 | 5.83 | 5.55 | 5.77 | 5.80 | 5.41 | 5.39 | 5.08 | 5.25 | 4.92 | 4.08 | 4.09 | 4.15 | |||||||
| Palo Alto Networks Inc. | — | 0.79 | 0.78 | 0.97 | 0.90 | 0.88 | 0.83 | 0.78 | 0.77 | 0.82 | 0.78 | 0.78 | 0.81 | 0.72 | 0.66 | 0.58 | 0.65 | 0.73 | 0.70 | 0.62 | 0.64 | |||||||
| Salesforce Inc. | 0.62 | 0.64 | 0.78 | 0.93 | 0.90 | 0.93 | 0.90 | 0.86 | 0.95 | 0.96 | 0.86 | 0.86 | 0.86 | 0.90 | 0.89 | 0.91 | 0.88 | 0.93 | 0.89 | 0.79 | 1.19 | |||||||
| ServiceNow Inc. | — | — | — | 0.61 | 0.75 | 0.91 | 0.96 | 0.99 | 1.03 | 1.02 | 1.05 | 1.03 | 0.98 | 1.00 | 1.01 | 1.08 | 1.11 | 1.06 | 1.17 | 1.06 | 1.06 | |||||||
| Synopsys Inc. | — | — | 0.99 | 0.99 | 0.98 | 1.20 | 1.16 | 6.34 | 1.99 | 1.88 | 1.10 | 0.99 | 0.88 | 0.85 | 0.92 | 0.90 | 0.86 | 0.85 | 0.87 | 0.99 | 0.93 | |||||||
| Workday Inc. | 0.91 | 1.22 | 1.71 | 1.98 | 1.94 | 1.80 | 1.94 | 1.92 | 1.88 | 1.87 | 2.01 | 1.90 | 1.83 | 1.66 | 1.75 | 1.52 | 1.47 | 0.96 | 1.03 | 0.98 | 0.86 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 48,471 ÷ 47,514 = 1.02
2 Click competitor name to see calculations.
The liquidity position exhibits a cyclical trajectory characterized by an initial period of strength, a prolonged phase of contraction, and a subsequent recovery in the final quarters. The overall trend demonstrates a transition from a conservative liquidity posture to a period of tight liquidity, eventually returning to a neutral position.
- Initial Liquidity Strength (August 2021 – May 2022)
- During this period, the quick ratio remained consistently above 1.0, starting at a peak of 1.90. This indicates a robust capacity to meet short-term obligations using only the most liquid assets, with a significant buffer existing between quick assets and current liabilities.
- Period of Liquidity Contraction (August 2022 – August 2025)
- A sharp decline is observed starting in August 2022, where the quick ratio fell to 0.49. This downturn was precipitated by a simultaneous reduction in total quick assets and a substantial increase in current liabilities, which rose from approximately 19.5 billion in May 2022 to 34.8 billion in August 2022. For the following three years, the ratio remained below the 1.0 threshold, fluctuating between 0.49 and 0.87. This suggests a period of constrained liquidity where liquid assets were insufficient to cover immediate liabilities without relying on inventory or other less liquid current assets.
- Recovery and Stabilization (November 2025 – August 2026)
- A significant recovery began in November 2025, with the quick ratio ascending to 0.77 and subsequently peaking at 1.22 in February 2026. This improvement was driven by a rapid expansion of total quick assets, which reached a high of 49.8 billion in February 2026. The final quarters show a stabilization of the ratio between 1.01 and 1.02, indicating that the organization has restored its ability to cover current liabilities with liquid assets on a one-to-one basis.
- Interplay Between Assets and Liabilities
- The volatility in the quick ratio is closely linked to the scaling of current liabilities, which grew from 23.1 billion in August 2021 to 47.5 billion by August 2026. While liabilities increased over the long term, the eventual recovery of the quick ratio was achieved through a corresponding and more aggressive increase in total quick assets during the 2025-2026 period.
AI Ask an analyst for more
Cash Ratio
Oracle Corp., cash ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 36,369) | 31,289) | 38,455) | 19,241) | 10,445) | 10,786) | 17,406) | 10,941) | 10,616) | 10,454) | 9,481) | 8,244) | 11,613) | 9,765) | 8,219) | 6,813) | 10,448) | 21,383) | 22,682) | 17,938) | 23,059) | |||||||
| Marketable securities | 708) | 605) | 677) | 525) | 560) | 417) | 417) | 370) | 295) | 207) | 423) | 446) | 470) | 422) | 550) | 537) | 772) | 519) | 707) | 4,900) | 16,251) | |||||||
| Total cash assets | 37,077) | 31,894) | 39,132) | 19,766) | 11,005) | 11,203) | 17,823) | 11,311) | 10,911) | 10,661) | 9,904) | 8,690) | 12,083) | 10,187) | 8,769) | 7,350) | 11,220) | 21,902) | 23,389) | 22,838) | 39,310) | |||||||
| Current liabilities | 47,514) | 41,764) | 40,737) | 37,795) | 39,874) | 32,643) | 29,623) | 29,052) | 32,045) | 31,544) | 24,885) | 24,407) | 25,357) | 23,090) | 22,880) | 27,106) | 34,819) | 19,511) | 20,833) | 18,881) | 23,071) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.78 | 0.76 | 0.96 | 0.52 | 0.28 | 0.34 | 0.60 | 0.39 | 0.34 | 0.34 | 0.40 | 0.36 | 0.48 | 0.44 | 0.38 | 0.27 | 0.32 | 1.12 | 1.12 | 1.21 | 1.70 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.47 | 0.45 | 0.49 | 0.56 | 0.51 | 0.50 | 0.48 | 0.26 | 0.30 | 0.32 | 0.41 | 0.50 | 0.50 | 0.38 | 0.36 | 0.45 | 0.41 | 0.35 | 0.37 | |||||||
| Adobe Inc. | — | — | — | 0.47 | 0.60 | 0.65 | 0.64 | 0.63 | 0.81 | 0.75 | 0.78 | 0.85 | 0.72 | 0.95 | 0.90 | 0.82 | 0.76 | 0.75 | 0.77 | 0.72 | 0.65 | |||||||
| AppLovin Corp. | — | — | — | 2.43 | 1.85 | 1.86 | 1.55 | 1.09 | 0.39 | 0.70 | 0.73 | 0.63 | 0.57 | 0.53 | 0.41 | 1.48 | 2.01 | 1.87 | 1.74 | 1.48 | 1.80 | |||||||
| Cadence Design Systems Inc. | — | — | — | 0.78 | 0.65 | 1.84 | 1.96 | 1.89 | 2.14 | 1.93 | 1.66 | 0.69 | 0.69 | 0.63 | 0.76 | 0.73 | 0.78 | 0.65 | 0.82 | 0.99 | 1.18 | |||||||
| Datadog Inc. | — | — | — | 2.66 | 2.87 | 2.81 | 3.13 | 2.89 | 2.40 | 2.25 | 1.80 | 1.65 | 2.86 | 2.58 | 2.78 | 2.87 | 2.61 | 2.48 | 2.62 | 2.72 | 2.78 | |||||||
| International Business Machines Corp. | — | — | — | 0.23 | 0.29 | 0.37 | 0.42 | 0.41 | 0.50 | 0.45 | 0.48 | 0.54 | 0.60 | 0.39 | 0.36 | 0.50 | 0.57 | 0.28 | 0.32 | 0.24 | 0.32 | |||||||
| Intuit Inc. | — | 0.71 | 0.55 | 0.34 | 0.49 | 0.44 | 0.64 | 0.34 | 0.39 | 0.54 | 0.76 | 0.24 | 0.45 | 0.97 | 0.97 | 0.54 | 0.82 | 0.90 | 1.09 | 0.48 | 1.52 | |||||||
| Microsoft Corp. | — | 0.46 | 0.57 | 0.69 | 0.76 | 0.67 | 0.70 | 0.66 | 0.68 | 0.60 | 0.68 | 0.67 | 1.15 | 1.07 | 1.22 | 1.22 | 1.23 | 1.10 | 1.35 | 1.62 | 1.62 | |||||||
| Palantir Technologies Inc. | — | — | — | 6.13 | 5.80 | 6.11 | 5.45 | 5.51 | 5.61 | 5.25 | 4.84 | 4.96 | 5.15 | 4.93 | 4.77 | 4.53 | 4.83 | 4.48 | 3.59 | 3.69 | 3.77 | |||||||
| Palo Alto Networks Inc. | — | 0.31 | 0.35 | 0.57 | 0.57 | 0.36 | 0.43 | 0.43 | 0.46 | 0.34 | 0.41 | 0.43 | 0.52 | 0.31 | 0.46 | 0.39 | 0.46 | 0.44 | 0.50 | 0.45 | 0.48 | |||||||
| Salesforce Inc. | 0.43 | 0.26 | 0.53 | 0.68 | 0.72 | 0.50 | 0.66 | 0.60 | 0.76 | 0.53 | 0.61 | 0.60 | 0.65 | 0.48 | 0.65 | 0.67 | 0.68 | 0.48 | 0.62 | 0.55 | 0.98 | |||||||
| ServiceNow Inc. | — | — | — | 0.38 | 0.52 | 0.60 | 0.69 | 0.72 | 0.80 | 0.69 | 0.78 | 0.75 | 0.73 | 0.66 | 0.73 | 0.82 | 0.85 | 0.71 | 0.89 | 0.81 | 0.83 | |||||||
| Synopsys Inc. | — | — | 0.73 | 0.66 | 0.56 | 0.80 | 0.75 | 5.93 | 1.62 | 1.53 | 0.79 | 0.66 | 0.48 | 0.53 | 0.67 | 0.62 | 0.48 | 0.56 | 0.60 | 0.70 | 0.51 | |||||||
| Workday Inc. | 0.67 | 0.85 | 1.36 | 1.66 | 1.65 | 1.45 | 1.62 | 1.63 | 1.62 | 1.55 | 1.71 | 1.59 | 1.56 | 1.32 | 1.48 | 1.30 | 1.31 | 0.72 | 0.83 | 0.77 | 0.71 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 37,077 ÷ 47,514 = 0.78
2 Click competitor name to see calculations.
The analysis of liquidity trends between August 2021 and August 2026 reveals a period of significant volatility in the company's ability to cover short-term obligations using only its most liquid assets. The cash ratio experienced a sharp contraction in 2022, followed by a prolonged period of suppressed liquidity, and a subsequent recovery toward the end of the observed period.
- Liquidity Contraction and Trough
- A substantial decline in the cash ratio is observed from August 2021 (1.70) to November 2022 (0.27). This downward trend was primarily driven by a sharp reduction in total cash assets, which fell from 39,310 million to 7,350 million, coinciding with a surge in current liabilities that peaked at 34,819 million in August 2022. This transition indicates a strategic shift or a period of high capital expenditure that significantly reduced the immediate cash cushion.
- Period of Relative Stability at Low Levels
- From February 2023 through November 2024, the cash ratio remained consistently low, oscillating between 0.34 and 0.48. During this window, current liabilities generally trended upward, moving from approximately 22,880 million to 29,052 million. The inability of cash assets to keep pace with rising liabilities maintained the ratio well below 1.0, suggesting a reliance on other current assets or operational cash flows to meet short-term commitments.
- Liquidity Recovery and Cash Accumulation
- A notable recovery in liquidity is evident starting in February 2025, characterized by a spike in total cash assets. The most significant increase occurred between November 2025 and February 2026, where cash assets rose from 19,766 million to 39,132 million. This surge propelled the cash ratio to its highest level since 2022, reaching 0.96 in February 2026. Despite a slight subsequent correction, the ratio stabilized between 0.76 and 0.78 by August 2026.
- Liability Management Trends
- Current liabilities exhibited a general upward trajectory over the five-year period, increasing from 23,071 million in August 2021 to 47,514 million by August 2026. This steady growth in short-term obligations necessitated the massive accumulation of cash observed in 2026 to prevent further deterioration of the cash ratio and to restore a more robust liquidity position.
AI Ask an analyst for more