Agilysys Inc (AGYS)

Cash ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	—	60,761	54,888	144,111	144,891	116,200	107,413	107,093	112,842	105,818	96,196	94,897	96,971	115,122	106,389	103,911	99,180	92,608	85,706	74,604
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	111,024	114,950	95,889	77,404	89,371	91,207	72,707	73,893	78,515	81,132	62,054	62,777	71,466	64,151	52,199	57,019	61,001	58,425	45,777	56,054
Cash ratio		0.00	0.53	0.57	1.86	1.62	1.27	1.48	1.45	1.44	1.30	1.55	1.51	1.36	1.79	2.04	1.82	1.63	1.59	1.87	1.33

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $111,024K
= 0.00

The cash ratio of Agilysys Inc has shown fluctuation over the periods examined. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of 1 indicates that the company has just enough cash to cover its current liabilities.

At the start of the analysis period, the cash ratio was relatively stable around 1.3 to 1.8, indicating a healthy liquidity position. However, there was a significant decline in the cash ratio in the later periods, dropping to as low as 0.53 by December 31, 2024, and even reaching 0.00 by March 31, 2025.

This sharp decline in the cash ratio towards the end of the period may raise concerns about Agilysys Inc's ability to meet its short-term obligations solely through its available cash and cash equivalents. It suggests a potential liquidity strain that could impact the company's financial flexibility and ability to manage unexpected expenses or economic downturns.

Management should closely monitor the company's cash position and consider strategies to improve liquidity, such as optimizing working capital management, revisiting financing options, or exploring ways to generate additional cash flows to strengthen the cash ratio and overall liquidity position.