Agilysys Inc (AGYS)

Quick ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	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	46,653	41,905	38,915	37,233
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	29,441	49,366	27,762	25,581	22,378	31,953	21,030	22,901	25,175	24,957	19,269	22,812	25,732	30,940	20,173	30,494	35,869	29,794	23,117	25,690
Total current liabilities	US$ in thousands	89,371	91,207	72,707	73,893	78,515	81,132	62,054	62,777	71,466	64,151	52,199	57,019	61,155	58,425	45,777	56,054	69,423	62,569	52,585	53,756
Quick ratio		1.95	1.82	1.86	1.80	1.72	1.70	1.89	1.88	1.71	2.18	2.41	2.22	2.04	2.11	2.31	1.87	1.19	1.15	1.18	1.17

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($144,891K + $—K + $29,441K) ÷ $89,371K
= 1.95

The quick ratio of Agilysys Inc has displayed some variability over the past few quarters, ranging from a low of 1.15 to a high of 2.41. Generally, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.

In the most recent quarter, as of March 31, 2024, the quick ratio stood at 1.95, which suggests that the company has $1.95 of liquid assets available to cover each $1 of current liabilities. This indicates a healthy liquidity position, as the company has more than enough liquid assets to meet its short-term obligations.

Although there have been fluctuations in the quick ratio across quarters, with values ranging between 1.15 and 2.41, the overall trend appears to be stable with some volatility. It is important for the company to maintain a sufficient level of liquidity to address any unexpected financial challenges or opportunities that may arise in the short term.

In conclusion, Agilysys Inc's quick ratio indicates that the company has been effectively managing its liquidity position, with a consistent ability to cover its short-term liabilities with liquid assets.