Agilysys Inc (AGYS)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	144,891	112,842	96,971	99,180	46,653
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	89,371	78,515	71,466	61,155	69,423
Cash ratio		1.62	1.44	1.36	1.62	0.67

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,891K + $—K) ÷ $89,371K
= 1.62

The cash ratio of Agilysys Inc has shown a generally positive trend over the past five years. The ratio increased from 0.67 in March 2020 to 1.62 in March 2024, which indicates the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents has significantly improved. This suggests that Agilysys Inc has become more liquid and better positioned to meet its short-term financial obligations. While the ratio did dip slightly in March 2022 to 1.36, it quickly rebounded and maintained an upward trajectory in the following years. Overall, the increasing trend in the cash ratio reflects the company's strengthening liquidity position and ability to weather potential financial challenges in the short term.