Blackbaud Inc (BLKB)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 976,308 | 929,757 | 918,643 | 850,971 | 819,060 |
| Total current liabilities | US$ in thousands | 1,252,100 | 1,197,140 | 1,230,640 | 1,109,630 | 1,013,400 |
| Current ratio | 0.78 | 0.78 | 0.75 | 0.77 | 0.81 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $976,308K ÷ $1,252,100K
= 0.78
The current ratio of Blackbaud Inc has shown a declining trend over the past five years, decreasing from 0.81 as of December 31, 2020, to 0.78 as of December 31, 2024. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations using its current assets alone.
Although the current ratio has decreased slightly over the period, it still remains below the ideal ratio of 1, suggesting a potential liquidity risk for the company. This may indicate that Blackbaud Inc may struggle to pay off its short-term debts in the near future if its financial situation does not improve.
It is important for the company to closely monitor its liquidity position and consider implementing strategies to improve its current ratio to a more favorable level to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024