Digi International Inc (DGII)

Current 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
Total current assets	US$ in thousands	165,378	166,198	167,354	169,066	170,241	166,208	169,557	167,840	156,702	246,658	246,314	234,431	167,262	170,058	166,462	188,367	185,035	192,547	177,922	175,167
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
Current ratio		2.35	1.93	1.88	2.02	1.88	1.72	1.79	1.87	1.98	4.18	4.29	4.12	2.48	2.78	3.31	3.54	3.01	4.33	5.08	4.26

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $165,378K ÷ $70,445K
= 2.35

The current ratio for Digi International, Inc. has been fluctuating over the past few quarters. In Q1 2024, the current ratio was 2.35, indicating that the company had $2.35 in current assets for every $1 of current liabilities. This represents a significant improvement from the previous quarter, where the ratio was 1.93.

Although the current ratio has shown some variability, it generally remains above 1, indicating that the company is able to meet its short-term obligations. A current ratio above 1 is considered favorable as it suggests that the company has more than enough current assets to cover its current liabilities.

It is noteworthy that the current ratio peaked in Q1 2024 at 2.35, which may indicate stronger liquidity and financial health during that period. However, it is also important to monitor the trend over time to assess the company's ability to maintain a healthy liquidity position.