Dynatrace Holdings LLC (DT)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.34 | 1.29 | 1.19 | 1.08 | 1.00 | 1.20 | 1.15 | 1.10 | 1.14 | 1.10 | 1.07 | 1.05 | 1.04 | 1.02 | 1.00 | 1.00 | 0.92 | 0.93 | 0.20 |
| Quick ratio | 1.15 | 1.19 | 1.13 | 1.04 | 0.97 | 0.87 | 1.06 | 1.02 | 0.99 | 0.94 | 0.88 | 0.87 | 0.94 | 0.93 | 0.89 | 0.88 | 0.85 | 0.80 | 0.79 | 0.15 |
| 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 |
Dynatrace Holdings LLC has shown generally positive trends in its liquidity ratios over the past few quarters. The current ratio has been fluctuating slightly but remained above 1, indicating that the company has more current assets than current liabilities to meet its short-term obligations. The quick ratio, which excludes inventory from current assets, also demonstrates a similar trend, suggesting the company's ability to settle its short-term liabilities without relying on selling inventory.
The cash ratio, which is a more stringent measure of liquidity, has shown improvement over the quarters, indicating the company's ability to cover its current liabilities with cash and cash equivalents. However, the cash ratio is relatively lower compared to the current and quick ratios, suggesting that a significant portion of the current assets consists of non-cash assets.
Overall, the liquidity ratios of Dynatrace Holdings LLC demonstrate a stable financial position, with adequate liquidity to meet short-term obligations. However, management should continue to monitor and manage the composition of current assets to ensure that the company can meet its financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 144.64 | 123.67 | 99.75 | 101.86 | 166.08 | 126.03 | 91.83 | 98.07 | 173.85 | 129.90 | 88.62 | 95.10 | 174.28 | 153.98 | 128.18 | 107.15 | 151.86 |
The cash conversion cycle of Dynatrace Holdings LLC has fluctuated over the past several quarters, indicating varying efficiency in managing its working capital.
The cycle measures the average time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle is generally favorable as it indicates the company is able to quickly convert its resources into cash, whereas a longer cycle may suggest inefficiencies in the company's operations.
Looking at the data provided, we can observe that the cash conversion cycle has ranged from a low of 88.62 days in September 2021 to a high of 174.28 days in March 2021, reflecting significant variability in how quickly the company is able to convert its investments into cash inflows.
In recent quarters, the cycle has shown some improvement, with a decrease from 123.67 days in December 2023 to 144.64 days in March 2024. This reduction suggests that Dynatrace Holdings LLC has been able to more efficiently manage its working capital and convert its investments into cash during this period.
Overall, it is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal operational and financial performance.