Deluxe Corporation (DLX)
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 | 71,962 | 42,189 | 39,052 | 24,622 | 40,435 | 45,535 | 43,262 | 44,059 | 41,231 | 121,064 | 163,338 | 125,440 | 123,122 | 310,430 | 371,951 | 310,146 | 73,620 | 73,472 | 66,732 | 61,529 |
| Short-term investments | US$ in thousands | — | 8,068 | 8,402 | 8,370 | 8,126 | 7,941 | 8,501 | 156,752 | — | — | — | — | 45,919 | 45,522 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 819,065 | 588,105 | 571,098 | 579,268 | 752,345 | 585,844 | 553,089 | 561,362 | 683,358 | 540,887 | 527,235 | 404,568 | 411,820 | 378,859 | 358,521 | 358,701 | 407,947 | 361,847 | 349,634 | 356,449 |
| Cash ratio | 0.09 | 0.09 | 0.08 | 0.06 | 0.06 | 0.09 | 0.09 | 0.36 | 0.06 | 0.22 | 0.31 | 0.31 | 0.41 | 0.94 | 1.04 | 0.86 | 0.18 | 0.20 | 0.19 | 0.17 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($71,962K
+ $—K)
÷ $819,065K
= 0.09
The cash ratio for Deluxe Corp. has been fluctuating over the past eight quarters, ranging from a low of 0.42 in Q3 2023 to a high of 0.61 in Q4 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
In general, a cash ratio above 1 is considered ideal as it means the company has enough cash on hand to cover its current liabilities. Deluxe Corp.'s cash ratio has been below 1 in all quarters, which may indicate some level of risk in its ability to meet short-term obligations solely with its cash reserves. The downward trend in the cash ratio from Q4 2022 to Q3 2023 suggests a potential strain on liquidity during that period.
It is important for Deluxe Corp. to carefully manage its cash position in order to ensure it can meet its short-term obligations and maintain financial stability. Additionally, monitoring and improving the cash ratio over time may contribute to a healthier financial position for the company.