Digi International Inc (DGII)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	27,510	31,693	34,900	152,432	54,129
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	69,640	55,997	50,450	43,738	59,227
Total current liabilities	US$ in thousands	89,337	85,978	96,507	58,941	61,230
Quick ratio		1.09	1.02	0.88	3.33	1.85

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($27,510K + $—K + $69,640K) ÷ $89,337K
= 1.09

The quick ratio of Digi International Inc has fluctuated over the past five years. In 2024, the quick ratio stands at 1.09, indicating that the company has $1.09 in liquid assets available to cover each dollar of its current liabilities. This represents a slight improvement compared to the previous year's quick ratio of 1.02.

Looking back further, the quick ratio was at 0.88 in 2022, suggesting a decrease in the company's ability to meet short-term obligations with its most liquid assets. However, there was a significant improvement in 2021, where the quick ratio was notably high at 3.33, indicating a strong ability to cover immediate liabilities with liquid assets.

In 2020, the quick ratio was 1.85, reflecting a healthy liquidity position but slightly below the current year's ratio. Overall, while there have been fluctuations in Digi International Inc's quick ratio in recent years, the current ratio of 1.09 suggests a decent ability to meet short-term obligations with available liquid assets.