Blackbaud Inc (BLKB)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	67,628	34,633	30,438	26,376	728,257	31,091	29,041	24,083	31,691	31,413	29,029	33,786	55,146	27,591	28,288	27,753	35,750	30,563	30,531	24,972
Short-term investments	US$ in thousands	1,970	7,343	7,362	3,529	353	3,557	3,731	2,136	249	1,853	1,194	2,049	977	6,076	5,390	945	321	4,901	1,284	1,205
Total current liabilities	US$ in thousands	1,252,100	962,205	1,348,980	862,627	1,197,140	937,600	1,361,130	863,863	1,230,640	871,022	994,319	758,932	1,109,630	660,126	877,627	646,134	1,013,400	620,268	858,885	622,779
Cash ratio		0.06	0.04	0.03	0.03	0.61	0.04	0.02	0.03	0.03	0.04	0.03	0.05	0.05	0.05	0.04	0.04	0.04	0.06	0.04	0.04

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($67,628K + $1,970K) ÷ $1,252,100K
= 0.06

The cash ratio of Blackbaud Inc, which measures the company's ability to cover its short-term debt obligations using its cash and cash equivalents, has shown some fluctuation over the past few years. From March 31, 2020, to June 30, 2022, the cash ratio remained relatively stable at around 0.04 to 0.06. However, there was a noticeable decrease in the cash ratio to 0.03 by June 30, 2022, and further to 0.02 by June 30, 2023, indicating a potential liquidity challenge for the company during these periods.

It is worth noting that there was a significant spike in the cash ratio to 0.61 by December 31, 2023, suggesting a substantial increase in cash reserves compared to the short-term debt obligations at that specific point in time. This exceptionally high cash ratio could be attributed to various factors such as a significant increase in cash holdings, a decrease in short-term debt, or a combination of both.

Subsequently, the cash ratio decreased to more normalized levels at 0.03 by March 31, 2024, and remained stable around 0.03 to 0.06 until December 31, 2024.

Overall, while the cash ratio of Blackbaud Inc experienced fluctuations during the review period, the company maintained a level of liquidity that allowed it to cover its short-term debt obligations, with notable exceptions such as the exceptionally high cash ratio recorded on December 31, 2023.