Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Twitter Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 5.89 | 4.42 | 9.15 | 4.69 | 9.12 | |
| Quick ratio | 5.66 | 4.36 | 9.00 | 4.62 | 8.69 | |
| Cash ratio | 4.76 | 3.83 | 7.98 | 4.10 | 7.55 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Twitter Inc. current ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Twitter Inc. quick ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Twitter Inc. cash ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Current Ratio
Twitter Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 7,918,370) | 8,637,108) | 7,620,075) | 7,111,036) | 5,321,884) | |
| Current liabilities | 1,343,867) | 1,952,826) | 832,476) | 1,516,311) | 583,278) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 5.89 | 4.42 | 9.15 | 4.69 | 9.12 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Alphabet Inc. | 2.93 | 3.07 | 3.37 | — | — | |
| Comcast Corp. | 0.85 | 0.93 | 0.84 | — | — | |
| Meta Platforms Inc. | 3.15 | 5.05 | 4.40 | — | — | |
| Netflix Inc. | 0.95 | 1.25 | — | — | — | |
| Walt Disney Co. | 1.08 | 1.32 | 0.90 | — | — | |
| Current Ratio, Sector | ||||||
| Media & Entertainment | 2.08 | 2.38 | — | — | — | |
| Current Ratio, Industry | ||||||
| Communication Services | 1.41 | 1.74 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,918,370 ÷ 1,343,867 = 5.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Twitter Inc. current ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Quick Ratio
Twitter Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,186,549) | 1,988,429) | 1,799,082) | 1,894,444) | 1,638,413) | |
| Short-term investments | 4,207,133) | 5,483,873) | 4,839,970) | 4,314,957) | 2,764,689) | |
| Accounts receivable, net of allowance for doubtful accounts | 1,217,404) | 1,041,743) | 850,184) | 788,700) | 664,268) | |
| Total quick assets | 7,611,086) | 8,514,045) | 7,489,236) | 6,998,101) | 5,067,370) | |
| Current liabilities | 1,343,867) | 1,952,826) | 832,476) | 1,516,311) | 583,278) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 5.66 | 4.36 | 9.00 | 4.62 | 8.69 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Alphabet Inc. | 2.79 | 2.95 | 3.21 | — | — | |
| Comcast Corp. | 0.71 | 0.81 | 0.55 | — | — | |
| Meta Platforms Inc. | 2.94 | 4.89 | 4.28 | — | — | |
| Netflix Inc. | 0.91 | 1.22 | — | — | — | |
| Walt Disney Co. | 0.94 | 1.15 | 0.67 | — | — | |
| Quick Ratio, Sector | ||||||
| Media & Entertainment | 1.94 | 2.25 | — | — | — | |
| Quick Ratio, Industry | ||||||
| Communication Services | 1.22 | 1.53 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,611,086 ÷ 1,343,867 = 5.66
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Twitter Inc. quick ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Cash Ratio
Twitter Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,186,549) | 1,988,429) | 1,799,082) | 1,894,444) | 1,638,413) | |
| Short-term investments | 4,207,133) | 5,483,873) | 4,839,970) | 4,314,957) | 2,764,689) | |
| Total cash assets | 6,393,682) | 7,472,302) | 6,639,052) | 6,209,401) | 4,403,102) | |
| Current liabilities | 1,343,867) | 1,952,826) | 832,476) | 1,516,311) | 583,278) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 4.76 | 3.83 | 7.98 | 4.10 | 7.55 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Alphabet Inc. | 2.17 | 2.41 | 2.65 | — | — | |
| Comcast Corp. | 0.30 | 0.41 | 0.18 | — | — | |
| Meta Platforms Inc. | 2.27 | 4.14 | 3.64 | — | — | |
| Netflix Inc. | 0.71 | 1.05 | — | — | — | |
| Walt Disney Co. | 0.51 | 0.67 | 0.17 | — | — | |
| Cash Ratio, Sector | ||||||
| Media & Entertainment | 1.42 | 1.75 | — | — | — | |
| Cash Ratio, Industry | ||||||
| Communication Services | 0.80 | 1.07 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,393,682 ÷ 1,343,867 = 4.76
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Twitter Inc. cash ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |