Aspen Technology Inc (AZPN)

Current 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
Total current assets	US$ in thousands	876,066	794,769	709,251	684,323	833,064	876,038	1,045,400	1,094,990	1,047,490	20,362
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
Current ratio		2.60	2.32	1.91	2.26	2.36	2.47	1.73	3.24	3.48	0.12

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $876,066K ÷ $337,401K
= 2.60

Aspen Technology Inc's current ratio has shown fluctuations over the past 10 quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher ratio indicates stronger liquidity and financial flexibility.

In the most recent quarter ended June 30, 2024, the company's current ratio stands at 2.60, indicating that it had $2.60 in current assets to cover each dollar of current liabilities. This reflects improved liquidity compared to the previous quarter where the ratio was 2.32.

Looking further back, Aspen Technology Inc's current ratio was relatively high in the first three quarters of 2023, ranging from 2.26 to 2.47, suggesting a healthy liquidity position during that period. However, in the last quarter of 2022, the current ratio dropped significantly to 1.73, before experiencing a substantial increase in the next quarter to 3.24, and peaking in the first quarter of 2022 at 3.48.

The significant decrease in the current ratio to 0.12 in the first quarter of 2022 may have been an anomaly or a data reporting error, as it is unusually low and not reflective of a healthy liquidity position. It is essential for investors and stakeholders to consider the trends in the current ratio over multiple periods to assess Aspen Technology Inc's overall liquidity and ability to meet short-term obligations.