ExlService Holdings Inc (EXLS)

Cash ratio

		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	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	136,953	122,655	93,960	87,298	118,669	89,262	106,304	106,540	135,337	114,581	150,211	177,121	218,530	206,423	163,619	224,874	119,165	101,432	84,842	86,688
Short-term investments	US$ in thousands	153,881	151,581	156,098	116,479	179,027	172,889	158,941	162,694	179,430	169,739	144,533	198,721	184,286	156,175	171,962	142,539	202,238	179,340	168,204	216,056
Total current liabilities	US$ in thousands	326,403	306,146	259,063	280,904	277,946	286,968	266,014	222,121	495,686	222,926	207,109	197,720	221,078	184,899	184,163	258,364	229,349	187,902	168,240	157,533
Cash ratio		0.89	0.90	0.97	0.73	1.07	0.91	1.00	1.21	0.64	1.28	1.42	1.90	1.82	1.96	1.82	1.42	1.40	1.49	1.50	1.92

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,953K + $153,881K) ÷ $326,403K
= 0.89

The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover liabilities.

Analyzing ExlService Holdings Inc's cash ratio over the past eight quarters, we observe fluctuation. The cash ratio has ranged between 0.91 and 1.41 during this period, showing variability in the company's ability to cover short-term obligations with its current cash holdings.

In the most recent quarter, Q4 2023, the cash ratio was 1.07, indicating that the company had $1.07 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a stable liquidity position in that specific quarter.

However, it is important to note that the cash ratio has not shown a consistent upward or downward trend over the observed period, which may indicate varying levels of liquidity management by the company. Further analysis of the company's cash management practices and overall financial health would be necessary to provide a comprehensive assessment of its liquidity position.