Aspen Technology Inc (AZPN)

Quick 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	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	—	—	—	—	—	—	—
Receivables	US$ in thousands	115,533	209,566	129,837	87,977	122,789	115,362	155,845	111,913	127,968	—
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
Quick ratio		1.04	1.13	0.65	0.69	1.03	1.13	0.99	1.46	1.92	0.12

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($236,970K + $—K + $115,533K) ÷ $337,401K
= 1.04

Aspen Technology Inc's quick ratio has shown significant fluctuations over the past 10 quarters, ranging from a low of 0.12 to a high of 1.92. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The quick ratio was relatively stable in the first three quarters of 2022, hovering around 1.1. However, it dropped sharply to 0.65 in the fourth quarter of 2023, indicating a potential liquidity strain. The company managed to improve its quick ratio in the following quarter to 0.69 but still remained below the ideal threshold of 1.

In the first half of 2024, Aspen Technology Inc saw a significant improvement in its quick ratio, reaching 1.13 in both quarters, indicating a healthier liquidity position. It peaked at 1.46 in the third quarter of 2022, suggesting a temporary surplus of liquid assets compared to current liabilities.

Overall, Aspen Technology Inc's quick ratio has displayed volatility, with fluctuations indicating changes in the company's ability to meet its short-term obligations with liquid assets. It is essential for the company to maintain a stable quick ratio above 1 to ensure sufficient liquidity to cover its short-term liabilities.