Twilio Inc (TWLO)

Quick ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cash	US$ in thousands	969,229	467,094	421,297	583,969	755,065	672,595	655,931	677,917	675,081	634,824	651,752	632,794	798,625	1,617,020	1,479,450	1,497,500	1,799,600	2,331,770	933,885	1,127,100
Short-term investments	US$ in thousands	1,573,370	1,980,980	1,963,100	2,114,280	2,361,060	3,154,000	3,356,060	3,179,490	3,008,890	3,310,480	3,503,320	3,575,750	3,593,660	3,606,290	3,878,430	3,896,750	4,125,580	3,375,280	2,105,910	2,171,600
Receivables	US$ in thousands	587,966	577,624	588,540	550,901	537,313	540,932	562,773	557,201	599,806	575,664	547,507	487,750	471,915	406,736	388,215	345,793	301,548	257,854	251,167	203,835
Total current liabilities	US$ in thousands	720,059	725,940	820,220	700,737	711,499	714,603	738,297	726,117	759,803	788,449	808,158	864,173	795,320	719,822	703,550	617,073	583,285	499,924	448,306	326,347
Quick ratio		4.35	4.17	3.62	4.64	5.13	6.11	6.20	6.08	5.64	5.73	5.82	5.43	6.12	7.82	8.17	9.30	10.68	11.93	7.34	10.73

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($969,229K + $1,573,370K + $587,966K) ÷ $720,059K
= 4.35

The quick ratio of Twilio Inc. exhibits notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, at 10.73 in September 2020, the ratio indicates a strong liquidity position, suggesting that the company's quickly realizable assets significantly exceeded its current liabilities. Throughout 2020 and into early 2021, the ratio remained relatively high, peaking at 11.93 in March 2021, which underscores an extensive liquidity buffer.

Subsequently, a downward trend is observed, with the ratio decreasing to 9.30 by September 2021 and further declining to approximately 5.43 by September 2022. This decline suggests a reduction in the company's short-term liquidity cushion, though it consistently remains above 5, indicating that Twilio generally maintains sufficient liquid assets relative to its current liabilities.

From late 2022 onwards, the ratio shows a continued but less pronounced decline, reaching a low of 3.62 in December 2024. Despite this downward trend, the ratio remains above 3, implying the company still possesses a reasonable level of liquid assets to cover its immediate liabilities. Minor fluctuations around the 4 to 6 range persist in the subsequent periods, with values such as 6.20 in December 2023 and 6.11 in March 2024, suggesting periods of improved short-term liquidity.

Overall, the trajectory of Twilio’s quick ratio indicates a movement from a highly conservative liquidity stance towards a more balanced position. The persistent ratio values above 3 throughout the period demonstrate that, despite declining trends, Twilio maintains an adequate level of liquid assets relative to its current liabilities, although the margin for liquidity has narrowed from its initial exceptionally high levels.