Blackline Inc (BL)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	422,243	642,565	367,821	322,577	242,330
Quick ratio		2.10	1.87	2.92	3.72	2.24

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($885,915K + $0K + $—K) ÷ $422,243K
= 2.10

The quick ratio of Blackline Inc has shown variability over the past five years. As of December 31, 2020, the quick ratio was 2.24, indicating that the company had $2.24 of easily convertible assets to cover each dollar of current liabilities.

There was a significant improvement in the quick ratio by December 31, 2021, reaching 3.72. This substantial increase suggests that Blackline Inc had a strong ability to meet its short-term obligations with its liquid assets.

However, by December 31, 2022, the quick ratio decreased to 2.92, indicating a slight decline in the company's short-term liquidity position compared to the previous year.

In the following year, on December 31, 2023, the quick ratio dropped further to 1.87, which may raise some concerns about Blackline Inc's ability to cover its current liabilities with its quick assets.

By the end of December 31, 2024, the quick ratio improved slightly to 2.10, but it remained below the levels observed in 2021 and 2022.

Overall, the trend in Blackline Inc's quick ratio suggests some fluctuations in the company's short-term liquidity position over the past five years, with notable increases and decreases observed in different periods. This indicates the need for further analysis to understand the factors driving these fluctuations and to assess the company's overall liquidity risk.