Aspen Technology Inc (AZPN)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 236,970 | 241,209 | 449,725 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 337,401 | 352,427 | 300,936 |
| Cash ratio | 0.70 | 0.68 | 1.49 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($236,970K
+ $—K)
÷ $337,401K
= 0.70
The cash ratio of Aspen Technology Inc has shown a declining trend over the past three years, decreasing from 1.49 in June 2022 to 0.70 in June 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened. A cash ratio of less than 1 suggests that the company may have difficulty meeting its current obligations without relying on other sources of liquidity. Management may need to evaluate its cash management strategies to ensure sufficient cash reserves to meet short-term obligations.
Peer comparison
Jun 30, 2024