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.