Blackline Inc (BL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	171,608	150,858	125,130	111,270	103,662
Total current liabilities	US$ in thousands	642,565	367,821	322,577	242,330	206,997
Quick ratio		2.14	3.33	4.10	2.70	3.44

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($271,117K + $933,355K + $171,608K) ÷ $642,565K
= 2.14

The quick ratio of Blackline Inc has fluctuated over the past five years. In 2023, the quick ratio stands at 2.14, indicating that the company has $2.14 in liquid assets available to cover each dollar of current liabilities. This ratio has decreased from the previous year, where it was 3.33.

Comparing the quick ratio of 2023 to 2022, there has been a significant decrease, suggesting a potential liquidity concern as the company may have fewer liquid assets available relative to its current liabilities. However, the quick ratio of 2.14 still indicates that Blackline Inc has an acceptable level of liquidity in the short term.

When compared to the quick ratios of 2021, 2020, and 2019, the current ratio continues to show variability, with 2021 having the highest quick ratio of 4.10, indicating stronger liquidity in that year. Overall, while the current quick ratio has decreased in 2023 compared to the prior year, it remains within a reasonable range to meet short-term obligations.