Blackline Inc (BL)

Quick ratio

		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	US$ in thousands	271,117	236,248	204,514	222,557	200,968	190,514	208,454	365,522	539,739	378,977	643,343	848,268	367,413	408,070	471,620	310,989	120,232	528,197	63,255	49,676
Short-term investments	US$ in thousands	933,355	925,721	921,737	865,314	874,083	855,406	821,137	666,122	658,964	798,952	524,851	308,991	175,206	117,433	154,876	302,978	487,515	68,324	81,939	85,079
Receivables	US$ in thousands	171,608	130,477	129,798	120,419	150,858	108,792	120,721	117,554	125,130	105,042	100,909	89,423	111,270	91,839	98,124	90,846	103,662	81,926	79,924	74,952
Total current liabilities	US$ in thousands	642,565	605,857	355,036	363,548	367,821	314,581	328,256	339,494	322,577	256,249	259,769	248,238	242,330	203,630	202,995	199,587	206,997	178,205	174,748	162,631
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

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 shown fluctuations over the past years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

Looking at the data provided, the quick ratio has generally been above 1, indicating that Blackline Inc has had sufficient liquid assets to cover its current liabilities. The quick ratio has ranged from a low of 1.29 to a high of 5.02 over the periods presented.

In recent quarters, the quick ratio has shown an upward trend, reaching levels above 3. This suggests that Blackline Inc has significantly improved its ability to meet short-term obligations using its liquid assets. However, the substantial increase in the quick ratio could possibly indicate that the company is holding excess cash or highly liquid assets that could be better utilized for business growth or investment opportunities.

Overall, a quick ratio above 1 is generally considered healthy, but it is essential for management to strike a balance between holding excess liquidity and deploying funds effectively to drive business growth and profitability.