Digi International Inc (DGII)

Quick 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	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
Receivables	US$ in thousands	61,441	55,997	50,715	49,678	54,445	50,450	61,793	67,424	49,359	43,738	41,276	44,108	52,500	59,227	53,876	78,491	81,097	56,417	44,721	53,493
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
Quick ratio		1.32	1.02	0.90	0.97	0.94	0.88	1.09	1.21	1.22	3.33	3.28	3.01	1.51	1.85	2.16	2.57	2.12	3.36	3.74	3.06

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($31,548K + $—K + $61,441K) ÷ $70,445K
= 1.32

The quick ratio of Digi International, Inc. has shown some fluctuation over the past eight quarters. In Q1 2024, the quick ratio was relatively strong at 1.39, indicating that the company has $1.39 in liquid assets available to cover each dollar of current liabilities. This suggests a healthy liquidity position.

However, in previous quarters, the quick ratio has ranged from 0.92 to 1.29, showing some variability in the company's ability to meet its short-term obligations with its quick assets. While a quick ratio above 1.0 generally indicates good liquidity, the downward trend from Q2 2022 to Q3 2023, followed by a slight improvement in Q4 2023, may raise some concerns about the company's ability to quickly cover its current liabilities in the short term.

Overall, Digi International's quick ratio has experienced fluctuations, and investors and stakeholders may want to closely monitor this ratio to ensure the company maintains a healthy liquidity position to meet its short-term financial obligations.