Digi International Inc (DGII)

Cash ratio

		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	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	31,548	31,693	29,580	31,660	30,949	34,900	41,515	41,386	47,188	152,432	146,942	127,189	49,263	54,129	55,085	58,086	49,072	92,792	84,094	69,593
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	2,254	2,497
Total current liabilities	US$ in thousands	70,445	85,978	89,019	83,769	90,565	96,507	94,578	89,977	79,311	58,941	57,415	56,861	67,487	61,230	50,345	53,206	61,525	44,458	35,021	41,091
Cash ratio		0.45	0.37	0.33	0.38	0.34	0.36	0.44	0.46	0.59	2.59	2.56	2.24	0.73	0.88	1.09	1.09	0.80	2.09	2.47	1.75

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($31,548K + $—K) ÷ $70,445K
= 0.45

Over the past eight quarters, Digi International, Inc.'s cash ratio has fluctuated within a range of 0.37 to 0.54. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q1 2024, Digi International, Inc. reported a cash ratio of 0.52, indicating that it had $0.52 of cash and cash equivalents for every dollar of current liabilities. This represents an improvement from the previous quarter's ratio of 0.42, suggesting a stronger liquidity position.

Looking further back, the company's cash ratio has shown some variability, with the highest ratio of 0.54 in Q2 2022 and the lowest ratio of 0.37 in Q3 2023. This indicates that the company's liquidity position has been somewhat inconsistent over the analyzed period.

Overall, while Digi International, Inc. has maintained a relatively healthy cash ratio above 0.3 (considered a benchmark for acceptable liquidity), there have been fluctuations in its ability to cover short-term obligations with cash and cash equivalents. Investors and stakeholders may want to monitor future cash ratio trends to assess the company's ongoing liquidity position.