N-Able Inc (NABL)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.23 | 2.75 | 2.49 | 1.99 | 2.48 |
| Quick ratio | 0.57 | 1.87 | 1.60 | 1.10 | 1.82 |
| Cash ratio | 0.57 | 1.87 | 1.60 | 1.10 | 1.82 |
N-Able Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio, measuring current assets against current liabilities, shows a general fluctuation over the years, ranging from a high of 2.75 in 2023 to a low of 1.23 in 2024. Although the company has generally maintained a current ratio above 1, which is considered acceptable, the decreasing trend in recent years may raise concerns about its short-term liquidity position.
The quick ratio, which considers only the most liquid assets like cash and equivalents against current liabilities, has also experienced fluctuations over the years. The ratio dropped significantly in 2024 to 0.57, indicating a potential challenge for N-Able Inc to quickly cover its short-term obligations with its most liquid assets.
Similarly, the cash ratio, focusing solely on cash and cash equivalents compared to current liabilities, followed a similar trend as the quick ratio. Although the company maintained a ratio above 1 in the earlier years, it decreased to 0.57 in 2024, suggesting a reduced ability to settle immediate obligations using available cash resources.
Overall, N-Able Inc's liquidity ratios demonstrate some variability and a potential decline in liquidity in recent years, which may require management attention to ensure the company can efficiently meet its short-term financial obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of N-Able Inc has been consistently at 0.00 days for the years 2020, 2021, 2022, 2023, and 2024. This indicates that the company is efficiently managing its cash flow from the conversion of resources into cash through sales. A cash conversion cycle of 0.00 days suggests that the company is able to swiftly convert its investments in inventory and accounts receivable back into cash, reflecting effective working capital management. Overall, N-Able Inc's ability to efficiently convert its resources into cash is a positive indicator of its financial health and operational efficiency.