Blackline Inc (BL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	271,117	200,968	539,739	367,413	120,232
Short-term investments	US$ in thousands	933,355	874,083	658,964	175,206	487,515
Total current liabilities	US$ in thousands	642,565	367,821	322,577	242,330	206,997
Cash ratio		1.87	2.92	3.72	2.24	2.94

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($271,117K + $933,355K) ÷ $642,565K
= 1.87

The cash ratio of Blackline Inc has fluctuated over the past five years, as indicated in the table. It was 1.87 as of December 31, 2023, compared to higher ratios in the previous years: 2.92 in 2022, 3.72 in 2021, 2.24 in 2020, and 2.94 in 2019. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a greater capacity to meet its short-term obligations using its readily available cash resources. However, the decreasing trend in Blackline Inc's cash ratio over the years may suggest a potential decrease in its liquidity position or a shift in its cash management strategy. It would be important to further investigate the factors contributing to these fluctuations in the cash ratio to assess the company's financial health and liquidity management practices.