Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Visa Inc., liquidity ratios
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Visa Inc. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Visa Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Visa Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
Visa Inc., current ratio calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 30,205) | 27,607) | 27,645) | 20,970) | 18,216) | 19,023) | |
| Current liabilities | 20,853) | 15,739) | 14,510) | 13,415) | 11,305) | 9,994) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.45 | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.23 | 1.25 | 1.40 | 1.40 | — | — | |
| Adobe Inc. | 1.11 | 1.25 | 1.48 | 0.79 | — | — | |
| Cadence Design Systems Inc. | 1.27 | 1.77 | 1.86 | 1.74 | — | — | |
| CrowdStrike Holdings Inc. | 1.83 | 2.65 | 2.38 | — | — | — | |
| International Business Machines Corp. | 0.92 | 0.88 | 0.98 | 1.02 | — | — | |
| Intuit Inc. | 1.39 | 1.94 | 2.26 | 1.83 | — | — | |
| Microsoft Corp. | 1.78 | 2.08 | 2.52 | 2.53 | — | — | |
| Oracle Corp. | 1.62 | 2.30 | 3.03 | 2.49 | — | — | |
| Palantir Technologies Inc. | 5.17 | 4.34 | 3.74 | — | — | — | |
| Palo Alto Networks Inc. | 0.77 | 0.91 | 1.91 | 1.78 | — | — | |
| Salesforce Inc. | 1.05 | 1.23 | 1.08 | 0.95 | — | — | |
| ServiceNow Inc. | 1.11 | 1.05 | 1.21 | 1.03 | — | — | |
| Synopsys Inc. | 1.09 | 1.16 | 1.19 | 0.99 | — | — | |
| Current Ratio, Sector | |||||||
| Software & Services | 1.44 | 1.68 | 1.93 | — | — | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.37 | 1.55 | 1.71 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 30,205 ÷ 20,853 = 1.45
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. | Visa Inc. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Visa Inc., quick ratio calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 15,689) | 16,487) | 16,289) | 7,838) | 8,162) | 9,874) | |
| Restricted cash equivalents, U.S. litigation escrow | 1,449) | 894) | 901) | 1,205) | 1,491) | 1,031) | |
| Investment securities | 2,833) | 2,025) | 3,752) | 4,236) | 3,547) | 3,564) | |
| Settlement receivable | 1,932) | 1,758) | 1,264) | 3,048) | 1,582) | 1,422) | |
| Accounts receivable | 2,020) | 1,968) | 1,618) | 1,542) | 1,208) | 1,132) | |
| Customer collateral | 2,342) | 2,260) | 1,850) | 1,648) | 1,324) | 1,106) | |
| Total quick assets | 26,265) | 25,392) | 25,674) | 19,517) | 17,314) | 18,129) | |
| Current liabilities | 20,853) | 15,739) | 14,510) | 13,415) | 11,305) | 9,994) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.26 | 1.61 | 1.77 | 1.45 | 1.53 | 1.81 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 1.12 | 1.14 | 1.29 | 1.29 | — | — | |
| Adobe Inc. | 1.00 | 1.11 | 1.34 | 0.70 | — | — | |
| Cadence Design Systems Inc. | 1.02 | 1.47 | 1.60 | 1.51 | — | — | |
| CrowdStrike Holdings Inc. | 1.68 | 2.50 | 2.18 | — | — | — | |
| International Business Machines Corp. | 0.76 | 0.69 | 0.83 | 0.87 | — | — | |
| Intuit Inc. | 1.17 | 1.65 | 2.04 | 1.44 | — | — | |
| Microsoft Corp. | 1.57 | 1.90 | 2.33 | 2.35 | — | — | |
| Oracle Corp. | 1.43 | 2.15 | 2.83 | 2.31 | — | — | |
| Palantir Technologies Inc. | 4.92 | 4.11 | 3.59 | — | — | — | |
| Palo Alto Networks Inc. | 0.75 | 0.88 | 1.85 | 1.72 | — | — | |
| Salesforce Inc. | 0.93 | 1.11 | 0.95 | 0.82 | — | — | |
| ServiceNow Inc. | 1.06 | 1.01 | 1.16 | 0.98 | — | — | |
| Synopsys Inc. | 0.85 | 0.89 | 0.94 | 0.73 | — | — | |
| Quick Ratio, Sector | |||||||
| Software & Services | 1.26 | 1.52 | 1.76 | — | — | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.09 | 1.30 | 1.47 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 26,265 ÷ 20,853 = 1.26
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. | Visa Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Visa Inc., cash ratio calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 15,689) | 16,487) | 16,289) | 7,838) | 8,162) | 9,874) | |
| Restricted cash equivalents, U.S. litigation escrow | 1,449) | 894) | 901) | 1,205) | 1,491) | 1,031) | |
| Investment securities | 2,833) | 2,025) | 3,752) | 4,236) | 3,547) | 3,564) | |
| Customer collateral | 2,342) | 2,260) | 1,850) | 1,648) | 1,324) | 1,106) | |
| Total cash assets | 22,313) | 21,666) | 22,792) | 14,927) | 14,524) | 15,575) | |
| Current liabilities | 20,853) | 15,739) | 14,510) | 13,415) | 11,305) | 9,994) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.07 | 1.38 | 1.57 | 1.11 | 1.28 | 1.56 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.45 | 0.52 | 0.67 | 0.55 | — | — | |
| Adobe Inc. | 0.75 | 0.84 | 1.09 | 0.51 | — | — | |
| Cadence Design Systems Inc. | 0.66 | 1.13 | 1.17 | 1.06 | — | — | |
| CrowdStrike Holdings Inc. | 1.42 | 2.22 | 1.85 | — | — | — | |
| International Business Machines Corp. | 0.28 | 0.22 | 0.36 | 0.24 | — | — | |
| Intuit Inc. | 0.90 | 1.46 | 2.00 | 1.39 | — | — | |
| Microsoft Corp. | 1.10 | 1.47 | 1.89 | 1.93 | — | — | |
| Oracle Corp. | 1.12 | 1.93 | 2.50 | 2.03 | — | — | |
| Palantir Technologies Inc. | 4.48 | 3.83 | 3.33 | — | — | — | |
| Palo Alto Networks Inc. | 0.44 | 0.57 | 1.39 | 1.37 | — | — | |
| Salesforce Inc. | 0.48 | 0.67 | 0.54 | 0.39 | — | — | |
| ServiceNow Inc. | 0.71 | 0.67 | 0.83 | 0.61 | — | — | |
| Synopsys Inc. | 0.56 | 0.65 | 0.58 | 0.42 | — | — | |
| Cash Ratio, Sector | |||||||
| Software & Services | 0.82 | 1.11 | 1.33 | — | — | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.66 | 0.89 | 1.07 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 22,313 ÷ 20,853 = 1.07
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. | Visa Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |