Dynatrace Holdings LLC (DT)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	778,983	782,649	701,524	700,703	555,348	422,451	563,430	571,345	462,967	408,723	370,319	387,218	324,962	299,505	248,437	250,377	213,170	188,555	211,696	57,453
Short-term investments	US$ in thousands	57,891	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,258,550	958,588	856,366	899,953	1,037,040	831,017	708,913	749,380	865,599	713,155	594,093	598,872	647,911	550,303	451,535	441,189	490,183	449,233	381,093	938,630
Cash ratio		0.66	0.82	0.82	0.78	0.54	0.51	0.79	0.76	0.53	0.57	0.62	0.65	0.50	0.54	0.55	0.57	0.43	0.42	0.56	0.06

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($778,983K + $57,891K) ÷ $1,258,550K
= 0.66

The cash ratio of Dynatrace Holdings LLC has fluctuated over the periods provided, ranging from a low of 0.06 to a high of 0.82. The cash ratio represents the proportion of cash and cash equivalents to current liabilities, indicating the firm's ability to cover its short-term obligations with its liquid assets.

Analyzing the trend, it can be observed that the cash ratio has generally shown volatility, with some periods demonstrating stronger liquidity positions (0.82 in Dec 2023 and Sep 2023) and others indicating weaker liquidity positions (0.06 in Sep 2019). A higher cash ratio is generally preferred as it suggests a greater ability to meet short-term obligations without relying on external sources of financing.

Considering the latest value of 0.66 as of March 31, 2024, Dynatrace Holdings LLC appears to maintain a moderate level of liquidity, which could indicate a reasonably healthy financial position in terms of its ability to cover current liabilities with available cash and cash equivalents. However, it would be beneficial for the company to strive for consistency in maintaining a higher cash ratio to enhance its short-term financial stability and flexibility.