Blackbaud Inc (BLKB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	31,251	31,691	55,146	35,750	31,810
Short-term investments	US$ in thousands	353	249	977	321	524
Receivables	US$ in thousands	101,862	102,809	102,726	95,404	88,868
Total current liabilities	US$ in thousands	1,197,140	1,230,640	1,109,630	1,013,400	988,837
Quick ratio		0.11	0.11	0.14	0.13	0.12

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($31,251K + $353K + $101,862K) ÷ $1,197,140K
= 0.11

The quick ratio of Blackbaud Inc has fluctuated over the past five years. In 2023, the quick ratio was 0.19, representing a slight improvement from the previous year's ratio of 0.17. The 2023 quick ratio indicates that the company may have faced challenges in meeting its short-term obligations with its most liquid assets. Comparing this ratio to 2021 and 2020, where the quick ratios were 0.23 and 0.21 respectively, Blackbaud Inc's liquidity position appears to have weakened in 2023. However, the 2023 quick ratio is consistent with the ratio reported in 2019, which was also 0.19.

Overall, a quick ratio below 1.0 typically suggests that a company may have difficulty meeting its short-term obligations with its readily available assets. Investors, creditors, and analysts may view a consistent or improving trend in the quick ratio positively as it indicates better short-term liquidity management. However, a declining trend, as seen in Blackbaud Inc's case from 2021 to 2023, may raise concerns about the company's ability to meet its short-term obligations. Further analysis of Blackbaud Inc's financial statements and liquidity management practices may help provide more insights into the factors affecting the quick ratio over the years.