Deluxe Corporation (DLX)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 34,399 | 41,300 | 74,014 | 131,771 | 72,000 | 42,200 | 39,100 | 24,622 | 40,400 | 45,535 | 43,300 | 44,059 | 41,200 | 121,064 | 163,300 | 125,440 | 123,100 | 310,400 | 371,951 | 310,100 |
| Short-term investments | US$ in thousands | 1 | 7 | — | — | — | 8,068 | 8,402 | 8,370 | 8,126 | 7,941 | 8,501 | 13,027 | 13,307 | 13,302 | 25,112 | — | 45,919 | 45,522 | — | — |
| Total current liabilities | US$ in thousands | 625,516 | 427,754 | 404,374 | 444,623 | 819,100 | 588,100 | 571,100 | 579,268 | 752,300 | 585,844 | 553,100 | 561,362 | 683,400 | 540,887 | 527,200 | 404,568 | 411,800 | 378,900 | 358,521 | 358,700 |
| Cash ratio | 0.05 | 0.10 | 0.18 | 0.30 | 0.09 | 0.09 | 0.08 | 0.06 | 0.06 | 0.09 | 0.09 | 0.10 | 0.08 | 0.25 | 0.36 | 0.31 | 0.41 | 0.94 | 1.04 | 0.86 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($34,399K
+ $1K)
÷ $625,516K
= 0.05
The cash ratio of Deluxe Corporation has fluctuated over the reporting periods. The cash ratio, which represents the proportion of a company's total cash and cash equivalents to its current liabilities, is an indicator of a company's liquidity and ability to cover its short-term obligations using its cash reserves.
From March 31, 2020, to June 30, 2020, the cash ratio improved from 0.86 to 1.04, indicating an increase in the company's ability to cover its current liabilities with its cash and cash equivalents. However, there was a decline in the cash ratio in subsequent quarters, reaching a low of 0.06 by December 31, 2022.
The lowest point in the cash ratio was observed in December 31, 2024, at 0.05, suggesting potential liquidity challenges for the company in meeting its short-term obligations with its available cash resources.
It is worth noting that there was a significant improvement in the cash ratio by March 31, 2024, rising to 0.30, which may indicate a strengthening of Deluxe Corporation's liquidity position.
Overall, the trend in the cash ratio shows that Deluxe Corporation experienced fluctuations in its liquidity position during the reporting periods, with a mix of improvements and declines in its ability to cover short-term liabilities with cash and cash equivalents. Monitoring this ratio closely can provide insights into the company's financial health and short-term solvency.