CommVault Systems Inc (CVLT)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	312,754	284,310	283,287	274,589	287,778	273,469	262,485	258,713	267,507	233,691	295,807	359,149	397,237	377,569	383,153	345,432	288,082	272,025	377,625	320,821
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	0	10,845	10,845	10,845	43,645	64,988	97,619	130,325
Total current liabilities	US$ in thousands	484,928	432,805	403,749	385,765	410,076	391,182	349,396	355,921	394,064	365,774	339,815	347,283	373,202	359,436	314,705	322,812	328,554	333,786	320,109	320,201
Cash ratio		0.64	0.66	0.70	0.71	0.70	0.70	0.75	0.73	0.68	0.64	0.87	1.03	1.06	1.08	1.25	1.10	1.01	1.01	1.48	1.41

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 some fluctuations over the past few quarters. The ratio has generally been above 1, indicating that the company has more than enough cash on hand to cover its short-term liabilities. However, there have been some periods where the cash ratio dropped below 1, which may suggest that the company had less cash readily available to meet its immediate obligations.

Specifically, the cash ratio was relatively stable around the 0.70 to 0.75 range from September 2022 to March 2023, showing that the company was able to maintain a healthy level of cash compared to its short-term liabilities during this period. However, there was a notable decrease in the ratio from March 2023 to December 2023, where it dropped to as low as 0.64. This decline may have raised concerns about the company's liquidity position during that timeframe.

From December 2023 to March 2024, there has been a slight improvement in the cash ratio, reaching 0.64 in March 2024. Although the ratio is still below 1, the upward trend suggests that the company may be managing its cash more effectively to address its short-term obligations. Overall, while CommVault Systems Inc has demonstrated the ability to maintain a healthy cash position, it is essential for the company to closely monitor and manage its cash levels to ensure liquidity and financial stability in the long run.