CommVault Systems Inc (CVLT)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	312,754	287,778	267,507	397,237	288,082
Short-term investments	US$ in thousands	—	—	—	0	43,645
Total current liabilities	US$ in thousands	484,928	410,076	394,064	373,202	328,554
Cash ratio		0.64	0.70	0.68	1.06	1.01

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($312,754K + $—K) ÷ $484,928K
= 0.64

The cash ratio of CommVault Systems Inc has shown a declining trend over the past five years, from 1.01 in 2020 to 0.64 in 2024. This indicates that the company's ability to cover its short-term liabilities solely with its cash and cash equivalents has weakened over the period. In 2021, the cash ratio was at its highest at 1.06, suggesting the company had more than enough cash to cover its short-term obligations. However, the subsequent decrease in the cash ratio may signal a reduction in the company's liquidity position or an increase in short-term liabilities relative to available cash. This trend warrants further investigation to understand the factors driving the changes in the cash ratio and to assess the company's overall liquidity position and financial health.