Blackline Inc (BL)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.19 | 2.18 | 3.62 | 3.42 | 3.40 | 3.74 | 3.57 | 3.45 | 4.18 | 5.08 | 4.96 | 5.11 | 2.78 | 3.70 | 3.64 | 3.61 | 3.49 | 3.87 | 1.35 | 1.35 |
| Quick ratio | 2.14 | 2.13 | 3.54 | 3.32 | 3.33 | 3.67 | 3.50 | 3.39 | 4.10 | 5.01 | 4.89 | 5.02 | 2.70 | 3.03 | 3.57 | 3.53 | 3.44 | 3.81 | 1.29 | 1.29 |
| Cash ratio | 1.87 | 1.92 | 3.17 | 2.99 | 2.92 | 3.32 | 3.14 | 3.04 | 3.72 | 4.60 | 4.50 | 4.66 | 2.24 | 2.58 | 3.09 | 3.08 | 2.94 | 3.35 | 0.83 | 0.83 |
Blackline Inc's liquidity ratios have shown a generally positive trend over the past five quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has been consistently above 2.0, indicating a strong liquidity position. The current ratio peaked at 5.08 in September 2021 and has since remained above 3.0.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been strong, remaining above 2.0 in all periods. The quick ratio peaked at 5.01 in September 2021 and has generally exhibited a positive trend since then.
The cash ratio, which represents the ability of the company to cover its current liabilities with cash and cash equivalents, has also shown a favorable trend. Although the cash ratio is lower than the current and quick ratios, it has consistently been above 1.0, indicating that Blackline Inc has sufficient liquid resources to meet its short-term obligations.
Overall, Blackline Inc's liquidity ratios demonstrate a solid financial position with adequate liquidity to support its operations and meet its short-term obligations. The company has maintained a healthy balance between current assets and current liabilities, ensuring that it can cover its financial commitments in the near term. However, it is important for the company to continue monitoring and managing its liquidity position to sustain its financial health in the long run.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 101.10 | 79.39 | 78.57 | 77.77 | 91.92 | 76.23 | 85.02 | 89.64 | 116.04 | 106.77 | 103.54 | 94.19 | 118.28 | 103.08 | 109.80 | 97.39 | 122.86 | 109.46 | 110.33 | 107.64 |
The cash conversion cycle of Blackline Inc has shown some fluctuations over the past few quarters. The company's cash conversion cycle, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from 76.23 days to 122.86 days over the past five quarters.
In the most recent quarter, the cash conversion cycle was 101.10 days, indicating that on average it takes the company approximately 101 days to convert its investments into cash. This represents an increase from the previous quarter where the cycle was 79.39 days.
It is important to note that a shorter cash conversion cycle is generally considered favorable as it indicates that the company is able to quickly convert its investments into cash, thus improving its liquidity position. Conversely, a longer cash conversion cycle may suggest inefficiencies in managing working capital.
In conclusion, Blackline Inc should continue to monitor and possibly work on improving its cash conversion cycle to ensure efficient management of its working capital and enhance its overall financial performance.