Autodesk Inc (ADSK)
Liquidity ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.82 | 0.84 | 0.69 | 0.81 | 0.83 |
| Quick ratio | 0.72 | 0.76 | 0.62 | 0.77 | 0.78 |
| Cash ratio | 0.52 | 0.52 | 0.44 | 0.57 | 0.57 |
Autodesk Inc's liquidity ratios have shown varying trends over the past five years.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated within a relatively narrow range of 0.69 to 0.84. The current ratio decreased slightly from 0.83 in 2020 to 0.69 in 2022 before slightly improving to 0.82 in 2024. While the current ratio is below 1 in each year, indicating that the company may have difficulty meeting its short-term obligations with its current assets alone, the slight improvement in 2024 may be seen as a positive sign.
The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has followed a similar pattern as the current ratio. It decreased from 0.78 in 2020 to 0.62 in 2022 before recovering to 0.76 in 2023 and then dropping to 0.72 in 2024. Like the current ratio, the quick ratio remains below 1 in each year, reflecting a potential liquidity risk.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and equivalents to cover current liabilities, has also shown fluctuations. It decreased from 0.57 in 2020 to 0.44 in 2022, before recovering slightly to 0.52 in 2023 and maintaining that level in 2024. The cash ratio below 1 in each year indicates that the company has a limited ability to cover its short-term obligations using only cash and equivalents.
Overall, Autodesk Inc's liquidity ratios suggest that the company may face challenges in meeting its short-term obligations with its current assets alone. Management may need to closely monitor and manage the company's liquidity position to ensure financial stability and meet its obligations in a timely manner.
See also:
Additional liquidity measure
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -13.26 | -7.48 | -46.06 | -70.74 | -21.32 |
Autodesk Inc's cash conversion cycle has shown a fluctuating trend over the past five years. The company's cash conversion cycle was negative in all five years, indicating that Autodesk Inc typically collects its accounts receivable, sells its inventory and pays its accounts payable faster than the industry average.
The cash conversion cycle improved significantly from negative 70.74 days in January 2021 to negative 13.26 days in January 2024, suggesting that the company has been able to streamline its operations and manage its working capital more efficiently in recent years. A lower (more negative) cash conversion cycle generally indicates better liquidity and operational efficiency.
However, it is worth noting that the cash conversion cycle was most favorable in January 2023 at negative 7.48 days, suggesting that Autodesk Inc was able to convert its investments in inventory and accounts receivable into cash even faster in that year. As such, the company should continue to focus on optimizing its cash conversion cycle to ensure ongoing liquidity and operational performance.