Blackline Inc (BL)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	885,915	271,117	200,968	539,739	367,413
Short-term investments	US$ in thousands	0	933,355	874,083	658,964	175,206
Total current liabilities	US$ in thousands	422,243	642,565	367,821	322,577	242,330
Cash ratio		2.10	1.87	2.92	3.72	2.24

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($885,915K + $0K) ÷ $422,243K
= 2.10

The cash ratio of Blackline Inc has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was 2.24, indicating that the company had $2.24 in cash and cash equivalents for every $1 of current liabilities.

By December 31, 2021, the cash ratio had increased to 3.72, suggesting an improvement in the company's liquidity position. However, in the following year, by December 31, 2022, the cash ratio decreased slightly to 2.92, still at a relatively healthy level compared to the industry average.

The cash ratio saw a more significant decline by December 31, 2023, dropping to 1.87. This may raise concerns about the company's ability to cover its short-term obligations with its available cash on hand.

By December 31, 2024, the cash ratio improved slightly to 2.10, although it remained lower than the levels observed in previous years. Overall, while the company has experienced fluctuations in its cash ratio, it is important for stakeholders to monitor this trend to ensure that Blackline Inc maintains adequate liquidity to meet its short-term financial obligations.