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.