DocuSign Inc (DOCU)

Quick ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash	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
Receivables	US$ in thousands	429,582	439,299	516,914	440,950	323,570
Total current liabilities	US$ in thousands	1,831,910	1,660,620	2,208,320	1,371,640	1,093,170
Quick ratio		0.76	0.89	0.70	0.91	1.00

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($648,623K + $314,924K + $429,582K) ÷ $1,831,910K
= 0.76

The Quick Ratio, also known as the Acid-Test Ratio, is a financial metric used to assess a company's short-term liquidity position. It provides insight into a company's ability to meet its short-term obligations using its most liquid assets.

DocuSign Inc's Quick Ratio has shown some fluctuations over the years based on the data provided:

- As of January 31, 2021, DocuSign had a Quick Ratio of 1.00, indicating that the company had $1.00 of liquid assets available to cover each $1.00 of current liabilities.
- By January 31, 2022, the Quick Ratio decreased to 0.91, suggesting a slight reduction in the company's short-term liquidity position.
- The Quick Ratio further declined to 0.70 as of January 31, 2023, indicating a potential decrease in the company's ability to meet its short-term obligations with its liquid assets.
- Subsequently, by January 31, 2024, the Quick Ratio improved to 0.89, showing a slight recovery in the company's liquidity position.
- As of January 31, 2025, the Quick Ratio dropped to 0.76, suggesting a decrease in the company's ability to cover its short-term liabilities with its liquid assets.

Overall, the downward trend in DocuSign Inc's Quick Ratio over the years raises concerns about the company's short-term liquidity and ability to meet its immediate financial obligations using its liquid assets. It is essential for stakeholders to monitor these fluctuations and assess the company's capability to manage its short-term financial obligations effectively.