Blackbaud Inc (BLKB)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 31,251 | 31,691 | 55,146 | 35,750 | 31,810 |
| Short-term investments | US$ in thousands | 353 | 249 | 977 | 321 | 524 |
| Total current liabilities | US$ in thousands | 1,197,140 | 1,230,640 | 1,109,630 | 1,013,400 | 988,837 |
| Cash ratio | 0.03 | 0.03 | 0.05 | 0.04 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($31,251K
+ $353K)
÷ $1,197,140K
= 0.03
The cash ratio of Blackbaud Inc has fluctuated over the past five years, ranging from 0.09 to 0.14. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
In 2021, the cash ratio was at its highest point of 0.14, suggesting that Blackbaud Inc had a relatively higher level of cash compared to its current liabilities. This could imply a better liquidity position and a reduced reliance on borrowing or other sources of short-term financing.
However, in 2022 and 2023, the cash ratio decreased to 0.09 and 0.10, respectively. This decline may indicate a relatively weaker ability to cover short-term obligations with cash reserves during those years. It is important for the company to monitor its cash position and ensure it maintains adequate liquidity to meet its financial obligations in a timely manner.
Overall, while the cash ratio of Blackbaud Inc has varied over the years, it is essential for the company to strike a balance between maintaining sufficient cash reserves and utilizing available cash efficiently to support its operations and growth initiatives.
Peer comparison
Dec 31, 2023