Autodesk Inc (ADSK)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	1,599,000	1,892,000	1,947,000	1,528,400	1,772,200
Short-term investments	US$ in thousands	287,000	354,000	125,000	235,700	85,000
Total current liabilities	US$ in thousands	5,151,000	4,351,000	4,000,000	4,009,400	3,254,700
Cash ratio		0.37	0.52	0.52	0.44	0.57

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,599,000K + $287,000K) ÷ $5,151,000K
= 0.37

The cash ratio measures a company's ability to cover its short-term obligations using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.

Autodesk Inc's cash ratio has fluctuated over the years, ranging from 0.37 to 0.57. The trend shows a decrease from 0.57 in January 31, 2021, to 0.37 in January 31, 2025. This indicates a decline in the company's ability to cover its short-term liabilities with its available cash.

It is important to note that a cash ratio of less than 1 suggests that the company may not be able to pay off all its current liabilities using only its cash and cash equivalents. This might indicate a potential liquidity risk for Autodesk Inc if the trend continues. Further analysis of the company's overall liquidity position and cash management strategies would provide a more comprehensive understanding of its financial health.