Dynatrace Holdings LLC (DT)

Quick ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash US$ in thousands 1,017,040 907,482 907,177 930,315 778,983 782,649 701,524 700,703 555,348 422,451 563,430 571,345 462,967 408,723 370,319 387,218 324,962 299,505 248,437 250,377
Short-term investments US$ in thousands 96,189 100,225 97,834 82,210 57,891 0
Receivables US$ in thousands 624,437 391,578 303,341 244,996 613,578 361,653 262,733 238,275 442,518 304,411 185,728 191,836 350,666 264,293 149,801 134,003 242,079 200,849 110,251 93,763
Total current liabilities US$ in thousands 1,381,290 1,048,570 1,047,900 1,051,230 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
Quick ratio 1.26 1.33 1.25 1.20 1.15 1.19 1.13 1.04 0.96 0.87 1.06 1.02 0.94 0.94 0.88 0.87 0.88 0.91 0.79 0.78

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,017,040K + $96,189K + $624,437K) ÷ $1,381,290K
= 1.26

The quick ratio of Dynatrace Holdings LLC has shown a fluctuating trend over the past five years, indicating varying levels of liquidity. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

From June 30, 2020, to March 31, 2022, the quick ratio remained below 1, indicating that the company may have struggled to cover its current liabilities with its liquid assets alone. However, starting from June 30, 2022, the quick ratio improved consistently, surpassing 1 and reaching a peak of 1.33 as of December 31, 2024. This suggests that the company's liquidity position strengthened over this period.

The quick ratio above 1 means that the company held more liquid assets than current liabilities, which may indicate a healthier financial position. A quick ratio of 1 or higher is generally considered a good indication of a company's liquidity and ability to meet its short-term obligations promptly.

Overall, the upward trend in Dynatrace Holdings LLC's quick ratio signals an improvement in its liquidity position and suggests a better ability to cover its short-term liabilities with its liquid assets in the recent periods. It is essential for the company to maintain a healthy quick ratio to ensure financial stability and meet its short-term obligations efficiently.