Understand The Balance Sheet

• Shareholder's equity growing wonderfully (24% CAGR)
• Healthy amount of buybacks
• Current ratio 1.44... good enough, especially for a software business
• Assets growing at 25.6% 5-year CAGR.

It's a rock solid balance sheet.

They have a $20B in assets, I wanted to understand what a marketplace software company would carry as assets. It's:

• Current assets:
  • Cash + Cash eqs (obvious)
  • Short-term investments
  • Funds receivable and amounts held on behalf of customers
  • Prepaids and other current assets
• Non-current assets:
  • Deferred tax assets
  • Goodwill and intangible assets, net
  • Other assets, noncurrent

Pretty wild that Cash makes up almost 30% of their asset base (2023: $6.8B Cash / $20B Total Assets). Current assets make up 80% of the total assets. I think this just speaks to the nature of a asset light, cash printing business. Kinda neat to analyze.