Aspen Technology Inc (AZPN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	236,970	177,592	130,753	120,540	241,209	286,736	446,088	382,458	449,725	20,362
Short-term investments	US$ in thousands	—	—	-18,971	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	337,401	342,279	371,983	302,231	352,427	355,132	605,203	337,533	300,936	170,674
Cash ratio		0.70	0.52	0.30	0.40	0.68	0.81	0.74	1.13	1.49	0.12

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 fluctuated over the past 10 quarters, ranging from a low of 0.12 to a high of 1.49. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

A higher cash ratio indicates that the company has a greater ability to cover its short-term liabilities, while a lower ratio suggests a potential liquidity risk. Aspen Technology Inc's cash ratio has shown significant variability, with a general trend of fluctuation.

In the most recent quarter, ending June 30, 2024, the cash ratio was 0.70, indicating that the company had $0.70 in cash and cash equivalents for every $1 of short-term liabilities. This ratio has improved compared to the previous quarter but is lower than the highs seen in the past.

Overall, Aspen Technology Inc's cash ratio demonstrates a varying liquidity position over the periods analyzed. It is essential for the company to closely manage its cash resources to maintain sufficient liquidity to meet its short-term obligations.