Doximity Inc (DOCS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	96,785	123,089	108,403	306,729	158,027	136,454	73,674	110,092	112,809	85,079	79,521	594,321
Short-term investments	US$ in thousands	666,115	540,123	594,875	511,064	651,220	551,092	607,055	654,402	595,253	680,499	663,140	132,133
Total current liabilities	US$ in thousands	147,250	104,762	123,181	132,694	139,507	105,884	118,143	120,753	111,282	91,713	95,624	100,182
Cash ratio		5.18	6.33	5.71	6.16	5.80	6.49	5.76	6.33	6.36	8.35	7.77	7.25

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($96,785K + $666,115K) ÷ $147,250K
= 5.18

The cash ratio of Doximity Inc has shown variations over the past few quarters. The cash ratio, which measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents, has fluctuated between 5.18 and 8.35 over the analyzed period.

In general, a higher cash ratio indicates that a company is more capable of meeting its short-term obligations using its readily available cash resources. On the other hand, a lower cash ratio may suggest potential liquidity challenges, as the company may struggle to cover its short-term liabilities with its existing cash reserves.

Doximity Inc's cash ratio has generally remained above 5.0, which is considered a healthy level as it implies the company has sufficient cash to cover its short-term obligations. The peak cash ratio of 8.35 in December 2021 indicates a strong cash position at that time, potentially reflecting prudent financial management or a temporary increase in cash reserves.

Overall, while the fluctuations in the cash ratio may indicate changes in the company's liquidity position, it is important to consider other financial metrics and factors in conjunction with the cash ratio to gain a comprehensive understanding of Doximity Inc's financial health.