Blackbaud Inc (BLKB)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.78 | 0.78 | 0.75 | 0.77 | 0.81 |
| Quick ratio | 0.06 | 0.03 | 0.03 | 0.05 | 0.04 |
| Cash ratio | 0.06 | 0.03 | 0.03 | 0.05 | 0.04 |
The liquidity ratios for Blackbaud Inc, as evidenced by the data provided, indicate a concerning trend over the past five years.
1. Current Ratio: The current ratio measures the company's ability to pay its short-term obligations with its current assets. Blackbaud Inc's current ratio has displayed a gradual decline from 0.81 in 2020 to 0.78 in 2024. A current ratio below 1 suggests that the company may have difficulties meeting its short-term liabilities with its current assets alone.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Blackbaud Inc's quick ratio has fluctuated over the years, ranging from 0.03 to 0.06. A quick ratio below 1 indicates that the company may struggle to meet its short-term obligations without relying on inventory sales.
3. Cash Ratio: The cash ratio reflects the company's ability to cover its short-term liabilities with cash and cash equivalents alone. Blackbaud Inc's cash ratio has also shown variability, ranging from 0.03 to 0.06. A cash ratio below 1 highlights the company's dependence on sources other than cash to meet its short-term obligations.
Overall, the liquidity ratios for Blackbaud Inc suggest a potential liquidity risk, as the company may face challenges in meeting its short-term financial obligations based on the current trend of decreasing ratios. Investors and stakeholders should closely monitor these ratios to assess the company's liquidity position accurately.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 507.17 | 491.35 | 519.47 |
The cash conversion cycle of Blackbaud Inc has shown a decreasing trend from 519.47 days as of December 31, 2020, to 491.35 days as of December 31, 2021, and then a slight increase to 507.17 days as of December 31, 2022. Interestingly, the cycle dropped significantly to 0.00 days as of both December 31, 2023, and December 31, 2024, indicating a potential improvement in efficiency in managing the company's working capital. This suggests that Blackbaud Inc has been able to streamline its operations, convert inventory and receivables into cash more quickly, and potentially improve liquidity and financial performance.