Blackline Inc (BL)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.59 | 2.69 | 1.95 | 2.30 | 2.19 | 2.18 | 3.62 | 3.42 | 3.40 | 3.74 | 3.57 | 3.44 | 4.18 | 5.08 | 4.96 | 5.11 | 2.78 | 3.71 | 3.64 | 3.61 |
| Quick ratio | 2.10 | 2.24 | 1.69 | 2.04 | 1.87 | 1.92 | 3.17 | 2.99 | 2.92 | 3.32 | 3.14 | 3.03 | 3.72 | 4.60 | 4.50 | 4.66 | 2.24 | 2.58 | 3.09 | 3.08 |
| Cash ratio | 2.10 | 2.24 | 1.69 | 2.04 | 1.87 | 1.92 | 3.17 | 2.99 | 2.92 | 3.32 | 3.14 | 3.03 | 3.72 | 4.60 | 4.50 | 4.66 | 2.24 | 2.58 | 3.09 | 3.08 |
Based on the liquidity ratios provided for Blackline Inc, let's analyze the trends and implications:
1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. Blackline Inc has generally maintained a healthy current ratio over the analyzed periods, ranging from a high of 5.11 on March 31, 2021, to a low of 2.18 on September 30, 2023. A current ratio above 1 indicates that the company has more current assets than current liabilities, ensuring it can meet its short-term obligations. However, the ratio decreased towards the end of the period, potentially indicating a decrease in liquidity or an increase in short-term debts.
2. Quick Ratio: The quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. Blackline Inc's quick ratio also displayed fluctuations but generally remained above 1, indicating the company's ability to cover its immediate liabilities without relying on the sale of inventory. Like the current ratio, the quick ratio decreased towards the end of the period, suggesting a potential need for improved cash management or reduction in short-term liabilities.
3. Cash Ratio: The cash ratio is the most stringent liquidity measure as it considers only cash and cash equivalents to cover current liabilities. Blackline Inc's cash ratio followed a similar pattern to the quick ratio, remaining above 1 for most periods. However, the ratio decreased towards the end of the period, signaling a potential liquidity challenge if immediate cash needs were to arise.
In summary, Blackline Inc generally maintained strong liquidity positions over the analyzed periods, as indicated by current, quick, and cash ratios above 1. However, the gradual decline in these ratios towards the end of the period suggests a need for the company to monitor and manage its liquidity position carefully to ensure it can meet short-term obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.66 | 0.00 | 0.00 |
The cash conversion cycle of Blackline Inc has been consistently low and stable, indicating efficient management of its working capital. The company's ability to convert its investments in inventory and accounts receivable into cash quickly has been impressive, with an average of 0.11 days over the reported periods. This suggests that Blackline Inc is effectively managing its cash flow and liquidity, enhancing its operational efficiency and financial performance. A low cash conversion cycle typically signifies a healthy and well-managed business, as it indicates a shorter time frame for the company to recover its cash invested in the production and sales process.