Box Inc (BOX)

Cash ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cash and cash equivalents	US$ in thousands	383,742	428,465	416,274	595,082	195,586
Short-term investments	US$ in thousands	96,948	32,783	170,000	—	20,000
Total current liabilities	US$ in thousands	679,280	715,827	718,975	612,839	577,434
Cash ratio		0.71	0.64	0.82	0.97	0.37

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($383,742K + $96,948K) ÷ $679,280K
= 0.71

The cash ratio of Box Inc has fluctuated over the past five years, ranging from 0.37 to 0.97. A higher cash ratio indicates the company has a greater ability to cover its short-term liabilities with its cash and cash equivalents.

In 2024, the cash ratio decreased to 0.71 from 0.82 in 2023, indicating a slight decrease in the company's ability to cover its short-term obligations solely with cash and cash equivalents. Despite this decrease, the cash ratio remains at a moderate level.

Comparing the current cash ratio to the ratio in 2020, there has been a notable improvement from 0.37 to 0.71, indicating that Box Inc has increased its liquidity position over the years.

It is important for investors and creditors to monitor the trend of the cash ratio over time to assess the company's liquidity and ability to meet its short-term financial obligations.