Liquidity Services Inc (LQDT)

Cash ratio

		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	Mar 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	153,226	130,312	108,634	98,557	110,281	98,147	95,583	76,166	96,122	88,286	84,264	91,321	106,335	112,666	87,613	77,844	76,036	72,729	41,816	24,183
Short-term investments	US$ in thousands	2,310	6,486	8,400	8,480	7,891	7,715	5,615	3,716	1,819	—	—	—	0	—	—	—	0	0	10,000	25,000
Total current liabilities	US$ in thousands	155,153	143,251	133,166	107,096	120,718	120,194	124,047	105,437	123,503	126,891	132,586	125,021	109,173	109,998	98,413	77,293	74,324	80,236	65,341	57,261
Cash ratio		1.00	0.95	0.88	1.00	0.98	0.88	0.82	0.76	0.79	0.70	0.64	0.73	0.97	1.02	0.89	1.01	1.02	0.91	0.79	0.86

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($153,226K + $2,310K) ÷ $155,153K
= 1.00

The cash ratio of Liquidity Services Inc has displayed fluctuating trends over the past few years. The ratio, which indicates the proportion of a company's current assets held in cash to cover its current liabilities, has been inconsistent.

In recent quarters, the cash ratio has shown a general upward trend, reaching a peak of 1.00 in both September 2024 and December 2023. This indicates that the company had sufficient cash on hand to cover its short-term obligations during these periods.

However, there have also been periods, such as in March 2023 and earlier quarters, where the cash ratio was below 1.00, indicating that the company's cash holdings were not enough to cover its current liabilities entirely. It's noteworthy that the cash ratio has shown some volatility, dropping to 0.64 in June 2022 before gradually recovering in subsequent quarters.

Overall, while the recent upward trend is positive, the company may need to consistently monitor and manage its cash position to ensure it can meet its short-term obligations promptly and effectively in the future.