DocuSign Inc (DOCU)

Cash ratio

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Cash and cash equivalents US$ in thousands 648,623 797,060 721,895 509,059 566,055
Short-term investments US$ in thousands 314,924 248,402 309,771 293,763 207,450
Total current liabilities US$ in thousands 1,831,910 1,660,620 2,208,320 1,371,640 1,093,170
Cash ratio 0.53 0.63 0.47 0.59 0.71

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($648,623K + $314,924K) ÷ $1,831,910K
= 0.53

The cash ratio of DocuSign Inc has shown a declining trend over the past five years, decreasing from 0.71 as of January 31, 2021, to 0.53 as of January 31, 2025. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened. Although the ratio fluctuated throughout the period, it appears that DocuSign Inc may have faced challenges in maintaining a high level of liquid assets relative to its current liabilities. It is important for the company to closely monitor its liquidity position and take steps to improve its cash reserves to ensure financial stability and meet its obligations in the short term.