Twilio Inc (TWLO)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,447,300 | 4,903,970 | 4,984,090 | 5,932,230 | 3,372,340 |
| Total current liabilities | US$ in thousands | 820,220 | 738,297 | 808,158 | 703,550 | 448,306 |
| Current ratio | 4.20 | 6.64 | 6.17 | 8.43 | 7.52 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,447,300K ÷ $820,220K
= 4.20
The current ratio of Twilio Inc. demonstrates notable fluctuations over the examined period from December 31, 2020, to December 31, 2024. At the end of 2020, the company exhibited a highly favorable liquidity position, with a current ratio of 7.52, indicating that current assets significantly exceeded current liabilities. This ratio further increased in 2021, reaching 8.43, which suggests an even stronger liquidity cushion during that year.
However, a decline is observed in 2022, with the current ratio decreasing to 6.17. Despite this reduction, the ratio remained well above the generally accepted benchmark of 1.0, implying that Twilio still maintained a robust ability to meet its short-term obligations. The subsequent year, 2023, saw a slight increase to 6.64, indicating a modest recovery or stabilization in the company's liquidity position.
By the end of 2024, the current ratio further decreased to 4.20. Although this represents a downward trend over the four-year period, the ratio remains substantially above 1.0, reflecting the company's continued capacity to cover its current liabilities comfortably. The overall trend suggests that while Twilio's liquidity has diminished relative to its earlier years, it still maintains a strong short-term liquidity position. The decreasing pattern may warrant attention to potential shifts in working capital management or operational cash flow strategies, but the ratios overall portray a company with solid liquidity measures.
Peer comparison
Dec 31, 2024