3D Systems Corporation (DDD)

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	212,040	331,525	445,554	490,444	525,898	388,134	341,297	298,834	389,270	789,657	502,752	131,844	132,440	75,010	75,264	63,922	112,776	133,665	127,616	150,397
Short-term investments	US$ in thousands	—	0	0	1,135	4,027	180,603	268,097	339,386	356,340	0	—	—	—	5,016	—	—	—	8,327	—	—
Total current liabilities	US$ in thousands	145,919	147,188	137,928	153,910	154,012	151,808	152,373	162,368	150,238	178,012	168,188	158,890	154,392	175,730	160,428	170,648	166,306	162,964	171,083	181,000
Cash ratio		1.45	2.25	3.23	3.19	3.44	3.75	4.00	3.93	4.96	4.44	2.99	0.83	0.86	0.46	0.47	0.37	0.68	0.87	0.75	0.83

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($212,040K + $—K) ÷ $145,919K
= 1.45

The cash ratio of 3D Systems Corporation has exhibited fluctuations over the past few quarters, ranging from 0.37 to 4.96. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents.

In analyzing the trend, we observe that the cash ratio experienced a significant improvement from the end of 2021 through the first half of 2022, peaking at 4.96 in March 2022. This indicates a strong liquidity position during that period. However, the cash ratio began to decline in the latter part of 2022 and continued to decrease throughout 2023 until March 2024.

The highest cash ratio of 4.96 suggests that 3D Systems Corporation had a substantial amount of cash and cash equivalents relative to its current liabilities, indicating a robust liquidity position. On the other hand, the lowest cash ratio of 0.37 in March 2020 suggests a relatively weaker liquidity position during that period.

Overall, the varying levels of the cash ratio reflect fluctuations in 3D Systems Corporation's ability to meet its short-term obligations solely with its cash reserves. Investors and analysts should monitor the trend of the cash ratio to assess the company's liquidity risk and financial health.