Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Autodesk Inc., solvency ratios
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
The solvency profile exhibits a significant strengthening trend over the six-year period, characterized by a strategic reduction in leverage and a substantial increase in the capacity to service fixed obligations.
- Debt and Capital Structure
- A general downward trajectory is observed in debt-related ratios. Debt to capital decreased from 1.11 in 2019 to 0.55 in 2024, indicating a shift toward a more equity-heavy capital structure. Similarly, the debt to assets ratio fell from 0.44 in 2019 to 0.23 in 2024, reflecting a reduced reliance on borrowed funds to finance the asset base. When incorporating operating lease liabilities, these trends remain consistent, although the ratios remain marginally higher.
- Equity-Based Leverage
- The debt to equity ratio experienced a notable spike, peaking at 3.09 in 2022 before declining sharply to 1.23 by 2024. This volatility is mirrored in the financial leverage ratio, which reached a maximum of 10.14 in 2022 and subsequently contracted to 5.34 in 2024. This pattern suggests a period of intensified borrowing or equity contraction around 2022, followed by an aggressive deleveraging phase.
- Coverage and Payment Capacity
- There is a marked improvement in the ability to meet financial obligations. The interest coverage ratio rose from a critically low 0.18 in 2019 to 14.32 by 2023, demonstrating a vast increase in earnings available to cover interest expenses. The fixed charge coverage ratio shows an even more pronounced upward trend, ascending from 0.62 in 2019 to 26.24 in 2024, signaling a robust cushion for meeting all fixed financial commitments.
In summary, the financial position has evolved from a state of high risk and low coverage in 2019 to a stable, low-leverage position by 2024, with significantly enhanced creditworthiness and operational flexibility.
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Debt Ratios
Coverage Ratios
Debt to Equity
Autodesk Inc., debt to equity calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.23 | 1.99 | 3.09 | 1.70 | — | — | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.04 | 0.01 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | — | |
| AppLovin Corp. | 3.36 | 2.61 | 1.72 | 1.53 | — | — | |
| Cadence Design Systems Inc. | 0.53 | 0.19 | 0.27 | 0.13 | — | — | |
| Datadog Inc. | 0.59 | 0.37 | 0.52 | 0.71 | — | — | |
| International Business Machines Corp. | 2.01 | 2.51 | 2.32 | 2.74 | — | — | |
| Intuit Inc. | 0.33 | 0.35 | 0.42 | 0.21 | — | — | |
| Microsoft Corp. | 0.29 | 0.31 | 0.39 | 0.50 | — | — | |
| Oracle Corp. | 9.98 | 84.33 | — | 16.08 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.19 | 1.14 | 17.51 | 5.08 | — | — | |
| Salesforce Inc. | 0.17 | 0.20 | 0.19 | 0.07 | — | — | |
| ServiceNow Inc. | 0.15 | 0.20 | 0.30 | 0.43 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | — | |
| Workday Inc. | 0.37 | 0.53 | 0.41 | 0.55 | — | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.55 | 0.64 | 0.71 | 0.83 | — | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.61 | 0.66 | 0.70 | 0.83 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 2,284 ÷ 1,855 = 1.23
2 Click competitor name to see calculations.
The solvency profile of the organization underwent a significant transformation between 2019 and 2024, transitioning from a position of stockholders' equity deficit to a strengthened equity base. This evolution has fundamentally altered the capital structure and the resulting leverage ratios.
- Equity Position and Capital Structure
- A stockholders' deficit was present in 2019 and 2020, recorded at -211 million and -139 million respectively. A pivotal shift occurred by January 31, 2021, when equity turned positive at 966 million. This upward trajectory continued with a notable acceleration in the final period, reaching 1,855 million by January 31, 2024, representing a substantial increase in the company's net asset value.
- Total Debt Trends
- Total debt remained relatively stable between 2019 and 2020, followed by a decrease to 1,637 million in 2021. A significant spike occurred in 2022, with debt rising to 2,628 million. In the subsequent two years, debt levels moderated and stabilized, ending the period at 2,284 million in 2024.
- Debt to Equity Ratio Analysis
- The debt to equity ratio was not applicable during the initial deficit periods but became a measurable metric in 2021 at 1.70. The ratio peaked in 2022 at 3.09, coinciding with the maximum recorded level of total debt and a slight contraction in equity. Following this peak, a consistent downward trend is observed, with the ratio falling to 1.99 in 2023 and further declining to 1.23 by January 31, 2024.
The overall trend indicates a strategic shift toward a more conservative financial structure. The simultaneous stabilization of total debt and the aggressive growth of stockholders' equity have led to a marked reduction in financial leverage, improving the overall solvency position of the entity over the analyzed timeframe.
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Debt to Equity (including Operating Lease Liability)
Autodesk Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Current operating lease liabilities | 67) | 85) | 87) | 71) | 48) | —) | |
| Long-term operating lease liabilities | 275) | 300) | 346) | 396) | 412) | —) | |
| Total debt (including operating lease liability) | 2,626) | 2,666) | 3,060) | 2,105) | 2,545) | 2,088) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.42 | 2.33 | 3.60 | 2.18 | — | — | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.15 | 0.12 | 0.15 | 0.18 | 0.21 | — | |
| Adobe Inc. | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | — | |
| AppLovin Corp. | 3.41 | 2.66 | 1.76 | 1.57 | — | — | |
| Cadence Design Systems Inc. | 0.56 | 0.24 | 0.34 | 0.18 | — | — | |
| Datadog Inc. | 0.68 | 0.45 | 0.59 | 0.78 | — | — | |
| International Business Machines Corp. | 2.14 | 2.66 | 2.46 | 2.92 | — | — | |
| Intuit Inc. | 0.36 | 0.39 | 0.46 | 0.25 | — | — | |
| Microsoft Corp. | 0.36 | 0.39 | 0.47 | 0.58 | — | — | |
| Oracle Corp. | 10.85 | 88.84 | — | 16.61 | — | — | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.10 | 0.11 | — | — | |
| Palo Alto Networks Inc. | 0.27 | 1.33 | 19.12 | 5.68 | — | — | |
| Salesforce Inc. | 0.23 | 0.25 | 0.25 | 0.15 | — | — | |
| ServiceNow Inc. | 0.24 | 0.30 | 0.44 | 0.60 | — | — | |
| Synopsys Inc. | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | — | |
| Workday Inc. | 0.41 | 0.58 | 0.46 | 0.68 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.63 | 0.73 | 0.81 | 0.93 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.67 | 0.72 | 0.76 | 0.90 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 2,626 ÷ 1,855 = 1.42
2 Click competitor name to see calculations.
The solvency profile shows a significant transition from a deficit equity position to a strengthened balance sheet over the six-year period ending January 31, 2024. While total debt experienced fluctuations, the steady accumulation of stockholders' equity has fundamentally altered the capital structure, leading to a marked improvement in the debt-to-equity ratio.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, exhibited volatility between 2019 and 2024. After an initial increase in 2020, obligations peaked at US$ 3,060 million in January 2022. Since that peak, a gradual reduction has been observed, with debt levels descending to US$ 2,626 million by January 2024.
- Equity Evolution
- A critical shift occurred in the equity position, moving from a deficit of US$ 211 million in 2019 to a positive balance of US$ 1,855 million in 2024. The transition to positive stockholders' equity was achieved by January 2021, and the growth has remained largely consistent thereafter, significantly increasing the internal capital buffer.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio became a meaningful metric in 2021 following the elimination of the equity deficit. A sharp increase to 3.60 was recorded in January 2022, driven by the simultaneous peak in total debt and a temporary dip in equity. However, a strong downward trend followed, with the ratio declining to 2.33 in 2023 and further improving to 1.42 in 2024, signaling a reduction in financial leverage and enhanced long-term solvency.
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Debt to Capital
Autodesk Inc., debt to capital calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Total capital | 4,139) | 3,426) | 3,477) | 2,603) | 1,946) | 1,877) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.55 | 0.67 | 0.76 | 0.63 | 1.07 | 1.11 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | — | |
| AppLovin Corp. | 0.77 | 0.72 | 0.63 | 0.60 | — | — | |
| Cadence Design Systems Inc. | 0.35 | 0.16 | 0.21 | 0.11 | — | — | |
| Datadog Inc. | 0.37 | 0.27 | 0.34 | 0.41 | — | — | |
| International Business Machines Corp. | 0.67 | 0.72 | 0.70 | 0.73 | — | — | |
| Intuit Inc. | 0.25 | 0.26 | 0.30 | 0.17 | — | — | |
| Microsoft Corp. | 0.23 | 0.24 | 0.28 | 0.33 | — | — | |
| Oracle Corp. | 0.91 | 0.99 | 1.09 | 0.94 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.16 | 0.53 | 0.95 | 0.84 | — | — | |
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.06 | — | — | |
| ServiceNow Inc. | 0.13 | 0.16 | 0.23 | 0.30 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | — | |
| Workday Inc. | 0.27 | 0.35 | 0.29 | 0.35 | — | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.35 | 0.39 | 0.42 | 0.45 | — | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,284 ÷ 4,139 = 0.55
2 Click competitor name to see calculations.
An analysis of the solvency metrics from January 31, 2019, to January 31, 2024, reveals a significant strengthening of the capital structure. The most prominent trend is the consistent reduction in the debt to capital ratio, which declined from a peak of 1.11 to a period low of 0.55.
- Total Debt Trends
- Total debt remained relatively stable between 2019 and 2020 at approximately US$ 2.08 billion before decreasing to US$ 1.64 billion in 2021. A substantial increase occurred in 2022, with debt rising to US$ 2.63 billion, followed by a correction to approximately US$ 2.28 billion in 2023 and 2024.
- Total Capital Growth
- Total capital exhibited a strong and consistent upward trajectory over the analyzed period. Starting at US$ 1.88 billion in 2019, capital grew to US$ 4.14 billion by January 31, 2024. This represents a steady expansion of the company's financial base, despite a minor contraction in 2023.
- Debt to Capital Ratio Dynamics
- The debt to capital ratio experienced a sharp decline between 2020 and 2021, dropping from 1.07 to 0.63. While a temporary increase to 0.76 was recorded in 2022—corresponding with the spike in total debt—the ratio resumed its downward trend thereafter. By January 31, 2024, the ratio reached 0.55, indicating that the growth in total capital significantly outpaced the accumulation of debt.
The overall trajectory indicates a strategic shift toward a less leveraged financial position. The convergence of expanding total capital and stabilizing total debt has resulted in a more robust solvency profile by the end of the period.
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Debt to Capital (including Operating Lease Liability)
Autodesk Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Current operating lease liabilities | 67) | 85) | 87) | 71) | 48) | —) | |
| Long-term operating lease liabilities | 275) | 300) | 346) | 396) | 412) | —) | |
| Total debt (including operating lease liability) | 2,626) | 2,666) | 3,060) | 2,105) | 2,545) | 2,088) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Total capital (including operating lease liability) | 4,481) | 3,811) | 3,909) | 3,070) | 2,405) | 1,877) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.59 | 0.70 | 0.78 | 0.69 | 1.06 | 1.11 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.13 | 0.11 | 0.13 | 0.15 | 0.17 | — | |
| Adobe Inc. | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | — | |
| AppLovin Corp. | 0.77 | 0.73 | 0.64 | 0.61 | — | — | |
| Cadence Design Systems Inc. | 0.36 | 0.19 | 0.25 | 0.15 | — | — | |
| Datadog Inc. | 0.40 | 0.31 | 0.37 | 0.44 | — | — | |
| International Business Machines Corp. | 0.68 | 0.73 | 0.71 | 0.74 | — | — | |
| Intuit Inc. | 0.26 | 0.28 | 0.31 | 0.20 | — | — | |
| Microsoft Corp. | 0.27 | 0.28 | 0.32 | 0.37 | — | — | |
| Oracle Corp. | 0.92 | 0.99 | 1.08 | 0.94 | — | — | |
| Palantir Technologies Inc. | 0.05 | 0.06 | 0.09 | 0.10 | — | — | |
| Palo Alto Networks Inc. | 0.21 | 0.57 | 0.95 | 0.85 | — | — | |
| Salesforce Inc. | 0.19 | 0.20 | 0.20 | 0.13 | — | — | |
| ServiceNow Inc. | 0.19 | 0.23 | 0.31 | 0.37 | — | — | |
| Synopsys Inc. | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | — | |
| Workday Inc. | 0.29 | 0.37 | 0.32 | 0.41 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.45 | 0.48 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.40 | 0.42 | 0.43 | 0.47 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,626 ÷ 4,481 = 0.59
2 Click competitor name to see calculations.
The Debt to Capital ratio, including operating lease liability, demonstrates a declining trend over the observed period. Initially, the ratio stood at 1.11 in 2019, indicating that total debt slightly exceeded total capital. Subsequent years reveal a consistent decrease in this ratio, suggesting an improving solvency position.
- Total Debt (including operating lease liability)
- Total debt experienced an increase from US$2,088 million in 2019 to US$2,545 million in 2020. It then decreased to US$2,105 million in 2021 before rising again to US$3,060 million in 2022. The most recent two years, 2023 and 2024, show a slight decrease, settling at US$2,666 million and US$2,626 million respectively. While fluctuations are present, the debt level remains relatively stable in the latter part of the period.
- Total Capital (including operating lease liability)
- Total capital exhibited a steady upward trajectory throughout the period. Beginning at US$1,877 million in 2019, it increased to US$2,405 million in 2020 and continued to grow, reaching US$3,070 million in 2021. This growth continued, with capital reaching US$3,909 million in 2022, US$3,811 million in 2023, and finally US$4,481 million in 2024. The consistent increase in total capital contributes significantly to the observed decline in the Debt to Capital ratio.
- Debt to Capital Ratio
- The Debt to Capital ratio decreased from 1.11 in 2019 to 1.06 in 2020, followed by a more substantial decline to 0.69 in 2021. The ratio experienced a slight increase to 0.78 in 2022, but continued its downward trend, reaching 0.70 in 2023 and further decreasing to 0.59 in 2024. This consistent reduction indicates a strengthening financial structure, with a decreasing reliance on debt financing relative to the company’s capital base. The ratio in 2024 suggests that for every dollar of capital, approximately US$0.59 is financed by debt, including operating lease liabilities.
The combined effect of relatively stable debt levels and consistently increasing capital suggests a deliberate strategy to improve the company’s financial leverage and reduce its overall risk profile. The declining ratio indicates a greater capacity to meet long-term obligations and potentially pursue future growth opportunities.
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Debt to Assets
Autodesk Inc., debt to assets calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Total assets | 9,912) | 9,438) | 8,607) | 7,280) | 6,179) | 4,729) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.23 | 0.24 | 0.31 | 0.22 | 0.34 | 0.44 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | — | |
| AppLovin Corp. | 0.62 | 0.61 | 0.56 | 0.53 | — | — | |
| Cadence Design Systems Inc. | 0.28 | 0.11 | 0.15 | 0.08 | — | — | |
| Datadog Inc. | 0.28 | 0.19 | 0.25 | 0.31 | — | — | |
| International Business Machines Corp. | 0.40 | 0.42 | 0.40 | 0.39 | — | — | |
| Intuit Inc. | 0.19 | 0.22 | 0.25 | 0.13 | — | — | |
| Microsoft Corp. | 0.15 | 0.16 | 0.18 | 0.21 | — | — | |
| Oracle Corp. | 0.62 | 0.67 | 0.69 | 0.64 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.05 | 0.14 | 0.30 | 0.31 | — | — | |
| Salesforce Inc. | 0.10 | 0.12 | 0.12 | 0.04 | — | — | |
| ServiceNow Inc. | 0.07 | 0.09 | 0.11 | 0.15 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | — | |
| Workday Inc. | 0.18 | 0.22 | 0.18 | 0.21 | — | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.23 | 0.25 | 0.26 | 0.28 | — | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,284 ÷ 9,912 = 0.23
2 Click competitor name to see calculations.
The solvency profile exhibits a general strengthening trend over the analyzed six-year period, characterized by a significant expansion of the asset base relative to total debt obligations.
- Total Asset Expansion
- A consistent and linear growth pattern is observed in total assets, which increased from 4,729 million US dollars in 2019 to 9,912 million US dollars by 2024. This sustained upward trajectory indicates a steady accumulation of resources and a broadening of the financial base.
- Debt Obligation Trends
- Total debt remained relatively stable between 2019 and 2021, followed by a notable increase to 2,628 million US dollars in 2022. Since that peak, debt levels have moderated and stabilized, ending at 2,284 million US dollars in 2024.
- Debt to Assets Ratio Analysis
- The debt to assets ratio demonstrates a significant overall decline, falling from 0.44 in 2019 to 0.23 in 2024. While a temporary increase to 0.31 occurred in 2022 due to the spike in total debt, the ratio subsequently trended downward. This suggests a reduced reliance on borrowed capital to finance the asset base and an improvement in the long-term solvency position.
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Debt to Assets (including Operating Lease Liability)
Autodesk Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term notes payable, net | —) | —) | 350) | —) | 450) | —) | |
| Long-term notes payable, net, excluding current portion | 2,284) | 2,281) | 2,278) | 1,637) | 1,635) | 2,088) | |
| Total debt | 2,284) | 2,281) | 2,628) | 1,637) | 2,085) | 2,088) | |
| Current operating lease liabilities | 67) | 85) | 87) | 71) | 48) | —) | |
| Long-term operating lease liabilities | 275) | 300) | 346) | 396) | 412) | —) | |
| Total debt (including operating lease liability) | 2,626) | 2,666) | 3,060) | 2,105) | 2,545) | 2,088) | |
| Total assets | 9,912) | 9,438) | 8,607) | 7,280) | 6,179) | 4,729) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.26 | 0.28 | 0.36 | 0.29 | 0.41 | 0.44 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.07 | 0.06 | 0.07 | 0.08 | 0.09 | — | |
| Adobe Inc. | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | — | |
| AppLovin Corp. | 0.63 | 0.62 | 0.57 | 0.54 | — | — | |
| Cadence Design Systems Inc. | 0.29 | 0.14 | 0.18 | 0.11 | — | — | |
| Datadog Inc. | 0.32 | 0.23 | 0.28 | 0.34 | — | — | |
| International Business Machines Corp. | 0.43 | 0.44 | 0.42 | 0.42 | — | — | |
| Intuit Inc. | 0.20 | 0.24 | 0.27 | 0.16 | — | — | |
| Microsoft Corp. | 0.19 | 0.19 | 0.21 | 0.25 | — | — | |
| Oracle Corp. | 0.67 | 0.71 | 0.73 | 0.66 | — | — | |
| Palantir Technologies Inc. | 0.04 | 0.05 | 0.07 | 0.08 | — | — | |
| Palo Alto Networks Inc. | 0.07 | 0.16 | 0.33 | 0.35 | — | — | |
| Salesforce Inc. | 0.14 | 0.15 | 0.15 | 0.10 | — | — | |
| ServiceNow Inc. | 0.11 | 0.13 | 0.17 | 0.21 | — | — | |
| Synopsys Inc. | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | — | |
| Workday Inc. | 0.20 | 0.24 | 0.20 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.27 | 0.29 | 0.30 | 0.32 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.28 | 0.29 | 0.31 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,626 ÷ 9,912 = 0.26
2 Click competitor name to see calculations.
The analysis of solvency ratios from January 31, 2019, to January 31, 2024, reveals a strengthening financial position characterized by a steady expansion of the asset base and a general reduction in financial leverage. While total debt levels have fluctuated, the growth in total assets has outpaced debt accumulation, resulting in a lower proportion of assets financed through debt.
- Asset Base Growth
- A consistent upward trend is observed in total assets, which grew from US$ 4,729 million in 2019 to US$ 9,912 million in 2024. This represents a sustained increase in the company's total resources over the six-year period.
- Debt Fluctuations
- Total debt, including operating lease liabilities, showed a non-linear trajectory. Debt levels increased in 2020 and reached a peak of US$ 3,060 million in 2022. Following this peak, a downward trend occurred, with debt decreasing to US$ 2,626 million by January 31, 2024.
- Debt-to-Assets Ratio Interpretation
- The debt-to-assets ratio declined from 0.44 in 2019 to 0.26 in 2024. Although a temporary spike to 0.36 occurred in 2022, the overall movement indicates a significant improvement in solvency. The reduction of the ratio suggests a decreased reliance on borrowed funds and an increased equity cushion, enhancing the company's long-term financial stability.
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Financial Leverage
Autodesk Inc., financial leverage calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 9,912) | 9,438) | 8,607) | 7,280) | 6,179) | 4,729) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 5.34 | 8.24 | 10.14 | 7.54 | — | — | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 1.98 | 1.99 | 2.14 | 2.21 | 2.18 | — | |
| Adobe Inc. | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | — | |
| AppLovin Corp. | 5.39 | 4.27 | 3.07 | 2.88 | — | — | |
| Cadence Design Systems Inc. | 1.92 | 1.67 | 1.87 | 1.60 | — | — | |
| Datadog Inc. | 2.13 | 1.94 | 2.13 | 2.29 | — | — | |
| International Business Machines Corp. | 5.02 | 6.00 | 5.80 | 6.98 | — | — | |
| Intuit Inc. | 1.74 | 1.61 | 1.69 | 1.57 | — | — | |
| Microsoft Corp. | 1.91 | 2.00 | 2.19 | 2.35 | — | — | |
| Oracle Corp. | 16.20 | 125.24 | — | 25.03 | — | — | |
| Palantir Technologies Inc. | 1.27 | 1.30 | 1.35 | 1.42 | — | — | |
| Palo Alto Networks Inc. | 3.87 | 8.29 | 58.35 | 16.14 | — | — | |
| Salesforce Inc. | 1.67 | 1.69 | 1.64 | 1.60 | — | — | |
| ServiceNow Inc. | 2.12 | 2.28 | 2.64 | 2.92 | — | — | |
| Synopsys Inc. | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | — | |
| Workday Inc. | 2.04 | 2.41 | 2.31 | 2.66 | — | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.35 | 2.55 | 2.72 | 2.95 | — | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.53 | 2.65 | 2.87 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 9,912 ÷ 1,855 = 5.34
2 Click competitor name to see calculations.
A consistent expansion in the balance sheet is evident, with total assets growing from US$ 4,729 million in 2019 to US$ 9,912 million by 2024. This growth is accompanied by a significant transformation in the capital structure, moving from a stockholders' deficit in the early period to a substantial positive equity balance by the end of the analyzed timeframe.
- Equity Evolution and Solvency
- The stockholders' equity position transitioned from a deficit of US$ 211 million in 2019 to a positive balance of US$ 1,855 million by 2024. The shift to positive equity occurred in 2021, signaling a fundamental improvement in the organization's solvency and a reduced reliance on external liabilities to sustain asset growth.
- Financial Leverage Analysis
- Financial leverage exhibited a peaked trajectory between 2021 and 2024. The ratio rose from 7.54 in 2021 to a peak of 10.14 in 2022, indicating a period of increased financial risk. Subsequently, a strong downward trend was observed, with the ratio declining to 8.24 in 2023 and further decreasing to 5.34 by 2024.
- Risk Mitigation Patterns
- The reduction in the financial leverage ratio from its 2022 peak to 5.34 in 2024 correlates with the steady increase in stockholders' equity. This pattern suggests a strategic movement toward deleveraging or a significant increase in retained earnings, resulting in a more conservative and stable financial risk profile.
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Interest Coverage
Autodesk Inc., interest coverage calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 906) | 823) | 497) | 1,208) | 215) | (81) | |
| Add: Income tax expense | 230) | 123) | 68) | (662) | 80) | 38) | |
| Add: Interest and investment income (expense), net | (26) | 71) | 65) | 51) | 54) | 52) | |
| Earnings before interest and tax (EBIT) | 1,110) | 1,017) | 630) | 598) | 349) | 9) | |
| Solvency Ratio | |||||||
| Interest coverage1 | — | 14.32 | 9.69 | 11.70 | 6.46 | 0.18 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 165.48 | 193.31 | 195.34 | 131.46 | 205.84 | — | |
| Adobe Inc. | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | — | |
| AppLovin Corp. | 5.95 | 2.38 | -0.19 | 1.45 | — | — | |
| Cadence Design Systems Inc. | 19.37 | 36.43 | 46.58 | 46.26 | — | — | |
| Datadog Inc. | 29.85 | 10.56 | -1.30 | 0.12 | — | — | |
| International Business Machines Corp. | 4.40 | 6.42 | 1.97 | 5.20 | — | — | |
| Intuit Inc. | 15.67 | 13.05 | 32.38 | 89.14 | — | — | |
| Microsoft Corp. | 37.72 | 46.38 | 41.58 | 31.31 | — | — | |
| Oracle Corp. | 4.39 | 3.65 | 3.84 | 6.28 | — | — | |
| Palantir Technologies Inc. | — | 69.33 | -87.97 | -133.20 | — | — | |
| Palo Alto Networks Inc. | 120.07 | 21.82 | -6.56 | -1.85 | — | — | |
| Salesforce Inc. | 18.49 | 3.20 | 7.93 | 21.49 | — | — | |
| ServiceNow Inc. | 76.57 | 43.00 | 15.78 | 9.89 | — | — | |
| Synopsys Inc. | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | — | |
| Workday Inc. | 4.12 | -1.54 | 1.97 | -3.00 | — | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.74 | 16.91 | 17.77 | 17.09 | — | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 19.15 | 17.37 | 22.18 | 19.66 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,110 ÷ -26 = —
2 Click competitor name to see calculations.
The financial trajectory between 2019 and 2024 shows a substantial expansion in operational profitability, resulting in a strengthened solvency position over the majority of the period.
- Earnings Before Interest and Tax (EBIT)
- A consistent and significant upward trend in EBIT is evident, rising from 9 million USD in 2019 to 1,110 million USD by 2024. The most pronounced growth occurred between 2019 and 2020, followed by steady annual increases, reflecting enhanced operational efficiency and scaled profitability.
- Interest Coverage Ratio
- The capacity to cover interest obligations improved dramatically from a ratio of 0.18 in 2019 to a peak of 14.32 in 2023. Although a slight contraction was observed in 2022, the overall trend indicates a vastly reduced solvency risk and a robust margin of safety for servicing debt obligations through operating profits.
- Net Interest and Investment Income
- Between 2019 and 2023, net interest and investment income remained positive, peaking at 71 million USD in 2023. However, a reversal occurred in 2024, with a shift to a net interest expense of 26 million USD, indicating a change in the organization's financing structure or investment yield environment during the final fiscal year.
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Fixed Charge Coverage
Autodesk Inc., fixed charge coverage calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 906) | 823) | 497) | 1,208) | 215) | (81) | |
| Add: Income tax expense | 230) | 123) | 68) | (662) | 80) | 38) | |
| Add: Interest and investment income (expense), net | (26) | 71) | 65) | 51) | 54) | 52) | |
| Earnings before interest and tax (EBIT) | 1,110) | 1,017) | 630) | 598) | 349) | 9) | |
| Add: Operating lease cost | 71) | 85) | 98) | 101) | 87) | 61) | |
| Earnings before fixed charges and tax | 1,181) | 1,102) | 728) | 699) | 436) | 70) | |
| Interest and investment income (expense), net | (26) | 71) | 65) | 51) | 54) | 52) | |
| Operating lease cost | 71) | 85) | 98) | 101) | 87) | 61) | |
| Fixed charges | 45) | 156) | 163) | 153) | 141) | 113) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 26.24 | 7.06 | 4.46 | 4.58 | 3.09 | 0.62 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 13.46 | 10.98 | 12.25 | 10.41 | 9.66 | — | |
| Adobe Inc. | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | — | |
| AppLovin Corp. | 5.73 | 2.30 | -0.07 | 1.35 | — | — | |
| Cadence Design Systems Inc. | 11.13 | 14.79 | 15.50 | 13.77 | — | — | |
| Datadog Inc. | 5.09 | 2.47 | 0.09 | 0.55 | — | — | |
| International Business Machines Corp. | 3.13 | 4.32 | 1.52 | 3.13 | — | — | |
| Intuit Inc. | 11.14 | 9.03 | 14.67 | 25.58 | — | — | |
| Microsoft Corp. | 17.61 | 19.44 | 19.50 | 16.90 | — | — | |
| Oracle Corp. | 3.55 | 3.12 | 3.22 | 5.17 | — | — | |
| Palantir Technologies Inc. | 9.48 | 4.62 | -5.06 | -7.89 | — | — | |
| Palo Alto Networks Inc. | 12.78 | 7.20 | -1.18 | -1.09 | — | — | |
| Salesforce Inc. | 4.74 | 1.51 | 2.18 | 2.92 | — | — | |
| ServiceNow Inc. | 12.36 | 7.59 | 3.87 | 2.95 | — | — | |
| Synopsys Inc. | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | — | |
| Workday Inc. | 2.60 | -0.29 | 1.15 | -0.69 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.93 | 9.38 | 9.33 | 9.14 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.24 | 11.19 | 13.23 | 12.08 | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,181 ÷ 45 = 26.24
2 Click competitor name to see calculations.
A significant improvement in the capacity to meet fixed obligations is evident over the analyzed six-year period. The solvency profile transitioned from a position of insufficiency in 2019 to a state of substantial excess coverage by 2024, reflecting a strengthened financial position.
- Earnings Before Fixed Charges and Tax
- A consistent and aggressive upward trend in earnings is observed, with values rising from US$ 70 million in 2019 to US$ 1,181 million in 2024. The most substantial growth occurred between 2019 and 2020, where earnings increased more than sixfold, establishing a foundation for continued expansion in subsequent years.
- Fixed Charges
- Fixed charges exhibited a period of moderate growth from 2019 to 2022, peaking at US$ 163 million. This was followed by a slight decrease in 2023 and a sharp reduction to US$ 45 million in 2024. This downward trajectory in the final year suggests a significant reduction in fixed financial obligations or a restructuring of debt.
- Fixed Charge Coverage Ratio
- The coverage ratio demonstrates an exponential improvement. In 2019, the ratio stood at 0.62, indicating that earnings were insufficient to cover fixed charges. However, the ratio improved to 3.09 by 2020 and continued to climb, reaching 26.24 by 2024. This progression indicates that the company's ability to service its fixed debts has increased significantly, driven by both the growth in earnings and the reduction of fixed costs.
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