Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio demonstrates a moderately stable trend over the analyzed quarters with values consistently fluctuating slightly above 1.0, indicating a stable liquidity position. Initial figures started at 1.03 in March 2020 and peaked at 1.40 in September 2020, showing an improvement in short-term asset coverage of liabilities. There was a slight decline towards the end of 2020 and into early 2021, followed by moderate variations around the 1.10 to 1.20 range through to March 2025. This suggests the company has generally maintained a consistent ability to cover current liabilities with current assets without significant volatility.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, portrays a pattern closely following the current ratio but slightly lower across periods, reflecting the liquidity available without relying on inventory. It started at 0.98 in March 2020, increased to 1.33 in September 2020, indicating enhanced liquid asset coverage, and then saw a moderation to levels ranging between 1.00 and 1.11 for most of the subsequent quarters. The ratio shows a slight downward trend towards the later quarters, though it remains above or around 1.0, suggesting the firm's quick assets are generally sufficient to cover immediate liabilities.
- Cash Ratio
- The cash ratio exhibits more pronounced fluctuations across the periods, beginning at 0.68 in March 2020 and peaking at 1.04 in September 2020, indicating the highest level of cash and cash equivalents relative to current liabilities during the timeframe. Following this peak, the ratio decreases and fluctuates within a lower range, generally between 0.66 and 0.85, with occasional slight increases. This indicates a more conservative liquid position held in cash form, with occasional variability possibly reflecting changes in cash management or operational needs. Despite these fluctuations, the cash ratio remains under 1.0, which is typical but denotes a more cautious cash reserve policy compared to the other liquidity measures.
Current Ratio
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
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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. | ||||||||||||||||||||||||||||
Synopsys Inc. | ||||||||||||||||||||||||||||
Workday Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's liquidity position over the reported periods.
- Current Assets
- Current assets exhibit a general upward trend, increasing from $2,806 million as of March 31, 2020, to $9,270 million by March 31, 2025. There are some periods of fluctuation, for instance, a slight decline from $4,524 million in March 2021 to $4,225 million in June 2021, but the overall trajectory remains positive.
- Current Liabilities
- Current liabilities demonstrate a similar increasing pattern, rising from $2,721 million at the start of the period to $8,258 million at the end. Fluctuations are also present; the liabilities peaked multiple times, such as $6,005 million in December 2022 and $8,358 million in December 2024, indicating periodic increases in short-term obligations.
- Current Ratio
- The current ratio generally fluctuates within a narrow range between approximately 1.03 and 1.4, indicating consistent liquidity over the period. It began at 1.03 in March 2020, peaked at 1.4 in September 2020, and then varied mostly between 1.05 and 1.17 in subsequent quarters. The ratio remains above 1 throughout, suggesting the company consistently maintains current assets slightly above current liabilities, indicative of moderate short-term financial stability.
In summary, the company has shown steady growth in both current assets and current liabilities over the five years. Despite rising liabilities, the current ratio remained relatively stable and above unity, reflecting a balanced liquidity position without significant risk of short-term solvency issues. Periodic fluctuations in both assets and liabilities appear normal within operational cycles and do not indicate material financial distress.
Quick Ratio
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||||||||||
Current portion of deferred commissions | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Synopsys Inc. | ||||||||||||||||||||||||||||
Workday Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends related to liquidity and the company's ability to meet short-term obligations.
- Total Quick Assets
- Total quick assets show an overall upward trend from March 31, 2020, through March 31, 2025. Starting at $2,657 million in early 2020, quick assets increased steadily, peaking at $8,519 million by the end of 2024. There are minor fluctuations, such as a dip between December 2023 and March 2024, but the general trajectory is positive, indicating a growth in the company's liquid assets available to cover immediate liabilities.
- Current Liabilities
- Current liabilities experienced a rising trend with fluctuations within the period. Beginning at $2,721 million in March 2020, liabilities rose to a peak of $8,358 million by December 2024, with slight decreases and plateaus noted around the middle quarters of each year. The consistent increase in current liabilities suggests expanding short-term financial obligations, which could reflect business growth or increased operational costs.
- Quick Ratio
- The quick ratio remained relatively stable throughout the period, fluctuating between 0.98 and 1.33. Early in 2020, the ratio peaked at 1.33 in September but then settled around approximately 1.0 to 1.1 in most quarters. This indicates that, despite growth in both quick assets and current liabilities, the company maintained a balanced liquidity position. Occasional dips close to or slightly below 1.0 suggest brief periods where liquid assets were just enough or marginally insufficient to cover current liabilities, while periods above 1.1 indicate more comfortable liquidity buffers.
In summary, the company demonstrated strong growth in liquid assets alongside increasing current liabilities, maintaining a quick ratio near or above 1.0 throughout the five-year span. This reflects a consistent capacity to meet short-term debt obligations with quick assets, although the close proximity of the quick ratio to 1.0 suggests that liquidity management requires continued attention to avoid periods of strain.
Cash Ratio
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Synopsys Inc. | ||||||||||||||||||||||||||||
Workday Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in liquidity and short-term financial health over the observed periods.
- Total Cash Assets
- The total cash assets have generally exhibited an upward trajectory from March 31, 2020, through March 31, 2025. Beginning at $1,859 million, cash assets increased steadily with minor fluctuations, reaching $6,597 million by the end of the period. Notable peaks were observed around March 31, 2023, and December 31, 2024, indicating periodic bolstering of cash reserves.
- Current Liabilities
- Current liabilities have consistently remained high, with an overall increasing trend. Starting from $2,721 million on March 31, 2020, liabilities rose unevenly and significantly, particularly after December 31, 2021, peaking at $8,358 million in December 31, 2024 before slightly declining to $8,258 million by March 31, 2025. These fluctuations suggest varying obligations and possible increases in short-term debt or payables over time.
- Cash Ratio
- The cash ratio, representing the liquidity position relative to current liabilities, displayed moderate volatility throughout the periods. It started at 0.68, increased above 1.0 by September 30, 2020, indicating strong liquidity at that point, but generally fluctuated between 0.66 and 0.85 in subsequent quarters. The ratio dipped below 0.7 several times, with the lowest values recorded around December 31, 2023, and March 31, 2025. This pattern suggests variable capacity to cover short-term liabilities solely with cash assets, implying that liquidity, while periodically strong, has not consistently maintained an optimal buffer over the years.
Overall, the data indicates a company strengthening its cash reserves substantially over the five-year span but simultaneously experiencing rising short-term obligations. The variable cash ratio reflects fluctuating liquidity management, with cash assets not always growing proportionally to current liabilities. Continuous monitoring of these trends would be advisable to ensure sustained short-term financial stability.