DocuSign Inc (DOCU)

Current ratio

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Total current assets	US$ in thousands	1,489,260	1,331,880	1,343,380	1,489,800	1,567,670	2,042,680	1,956,470	1,804,060	1,631,000	1,480,380	1,422,780	1,362,520	1,319,600	1,206,590	1,182,790	1,111,440	1,162,350	929,760	968,023	1,043,240
Total current liabilities	US$ in thousands	1,831,910	1,598,770	1,607,300	1,604,960	1,660,620	2,189,220	2,233,960	2,195,460	2,208,320	1,449,530	1,402,240	1,343,720	1,371,640	1,260,370	1,209,630	1,097,910	1,093,170	923,100	854,038	729,590
Current ratio		0.81	0.83	0.84	0.93	0.94	0.93	0.88	0.82	0.74	1.02	1.01	1.01	0.96	0.96	0.98	1.01	1.06	1.01	1.13	1.43

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 few years, based on the provided data. The trend shows a general decline from around 1.40 in April 2020 to approximately 0.81 in January 2025.

In analyzing the current ratio, it is important to note that a current ratio below 1 indicates that a company may have difficulty meeting its short-term obligations with its current assets alone. With DocuSign's current ratio consistently below 1 since July 2021, this may raise concerns about the company's liquidity and ability to cover its short-term liabilities without relying on external sources of funding.

The downward trend in the current ratio of DocuSign Inc may suggest challenges in managing its current assets and liabilities efficiently over the period under review. Investors and stakeholders may want to further investigate the reasons behind this trend, as a declining current ratio could signal potential financial strain for the company if not addressed promptly.

Overall, the analysis of DocuSign Inc's current ratio indicates a declining trend, which may require management's attention to ensure the company maintains an optimal level of liquidity to meet its short-term obligations effectively.