DocuSign Inc (DOCU)

Current ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Total current assets	US$ in thousands	1,489,260	1,567,670	1,631,000	1,319,600	1,162,350
Total current liabilities	US$ in thousands	1,831,910	1,660,620	2,208,320	1,371,640	1,093,170
Current ratio		0.81	0.94	0.74	0.96	1.06

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,489,260K ÷ $1,831,910K
= 0.81

The current ratio of DocuSign Inc has exhibited some fluctuations over the past five years. As of January 31, 2021, the current ratio was 1.06, indicating that the company had slightly more current assets than current liabilities. However, there was a notable decline in the current ratio to 0.96 by January 31, 2022, suggesting a tighter liquidity position.

The trend continued to worsen in the subsequent years, with the current ratio decreasing to 0.74 by January 31, 2023, reflecting a potential liquidity strain. However, there was a slight improvement in the company's liquidity position as of January 31, 2024, with the current ratio rising to 0.94. Nonetheless, the current ratio dropped again to 0.81 by January 31, 2025, indicating that the company may be facing challenges in meeting its short-term obligations with its current assets.

Overall, the downward trend in the current ratio raises concerns about DocuSign Inc's ability to cover its short-term liabilities with its current assets. It is essential for the company to closely monitor its liquidity position and take appropriate measures to improve its working capital management to ensure its financial stability in the future.