Deluxe Corporation (DLX)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($34,399K
+ $1K
+ $—K)
÷ $625,516K
= 0.05
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of greater than 1 indicates that a company has sufficient liquid assets to cover its current liabilities.
Based on the provided data for Deluxe Corporation, the quick ratio fluctuated over the quarters within the range of 0.05 to 1.04. The quick ratio was at its highest in June 30, 2020 at 1.04, indicating that the company had more than enough liquid assets to cover its current liabilities at that time. However, the quick ratio started to decline significantly and fell to its lowest point at 0.05 by December 31, 2024.
The trend in the quick ratio indicates fluctuating liquidity levels over the quarters. A decreasing quick ratio over time can raise concerns about the company's ability to meet its short-term obligations with available liquid assets. A quick ratio of less than 1 suggests potential liquidity challenges in the near term.
It is essential for Deluxe Corporation to carefully monitor its quick ratio and take appropriate actions to maintain a healthy balance between liquid assets and current liabilities to ensure financial stability and meet its short-term obligations efficiently. Furthermore, the company may need to implement strategies to improve its liquidity position and strengthen its financial health.