Liquidity Services Inc (LQDT)
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 | 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 | 36,497 | 36,414 | 33,922 |
| Short-term investments | US$ in thousands | 8,480 | 7,891 | 7,715 | 5,615 | 3,716 | 1,819 | — | — | — | 0 | — | — | — | 0 | 0 | 10,000 | 25,000 | 30,000 | 30,000 | 30,000 |
| Total current liabilities | US$ in thousands | 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 | 68,822 | 67,531 | 63,801 |
| Cash ratio | 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 | 0.97 | 0.98 | 1.00 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,557K
+ $8,480K)
÷ $107,096K
= 1.00
The cash ratio of Liquidity Services Inc has shown a generally increasing trend over the last quarters. The cash ratio reached a peak of 1.08 in Q1 2024, indicating that the company had $1.08 in cash and cash equivalents for every $1 of current liabilities. This suggests the company has a strong ability to cover its short-term obligations using its cash resources.
The improvement in the cash ratio from Q2 2022 to Q1 2024 reflects the company's effective management of cash and liquidity. The rising trend indicates that Liquidity Services Inc has been progressively strengthening its liquidity position over the past quarters, which can enhance financial stability and flexibility in managing its short-term obligations.
Overall, the increasing cash ratio of Liquidity Services Inc signifies a positive liquidity position and suggests that the company has ample cash reserves to meet its immediate obligations, potentially weathering unforeseen financial challenges.
Peer comparison
Dec 31, 2023