DXC Technology Co (DXC)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,796,000 | 1,224,000 | 1,858,000 | 2,672,000 | 2,968,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,411,000 | 4,394,000 | 5,187,000 | 6,853,000 | 8,150,000 |
| Cash ratio | 0.41 | 0.28 | 0.36 | 0.39 | 0.36 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,796,000K
+ $—K)
÷ $4,411,000K
= 0.41
The cash ratio of DXC Technology Co has shown some fluctuations over the past five years. As of March 31, 2021, the company had a cash ratio of 0.36, indicating that it had $0.36 of cash and cash equivalents for every $1 of current liabilities. The cash ratio increased slightly to 0.39 by March 31, 2022, before dropping back to 0.36 by March 31, 2023.
However, there was a significant decrease in the cash ratio to 0.28 by March 31, 2024, which may be a cause for concern as it indicates a lower level of cash reserves relative to current liabilities. It's important to assess the reasons behind this decline and evaluate the company's liquidity position.
Fortunately, by March 31, 2025, the cash ratio improved to 0.41, showing a healthier cash position compared to the previous year. This increase suggests that DXC Technology Co may have bolstered its cash reserves or managed its current liabilities more effectively.
Overall, while the cash ratio of DXC Technology Co has fluctuated over the years, it is vital for investors and stakeholders to monitor these changes closely to assess the company's liquidity and ability to meet its short-term obligations.
Peer comparison
Mar 31, 2025