N-Able Inc (NABL)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 153,048 | 127,433 | 109,190 | 98,080 | 98,847 | 87,729 | 86,618 | 70,439 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 81,717 | 79,626 | 73,623 | 63,851 | 61,814 | 59,421 | 58,481 | 56,063 |
| Cash ratio | 1.87 | 1.60 | 1.48 | 1.54 | 1.60 | 1.48 | 1.48 | 1.26 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($153,048K
+ $—K)
÷ $81,717K
= 1.87
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that a company has a greater ability to meet its short-term obligations using its readily available cash resources.
Analyzing the trend in N-Able Inc's cash ratio from December 2021 to December 2023, we observe fluctuations in the ratio. The ratio decreased from 11.23 in December 2021 to 1.06 in September 2021, indicating a significant decrease in the company's ability to cover short-term liabilities with cash during that period.
However, the cash ratio gradually improved from 1.06 in September 2021 to 1.87 in December 2023. This suggests that N-Able Inc has been more effective in managing its cash and cash equivalents relative to its short-term liabilities over the period under review.
Overall, the company's cash ratio has shown a positive trend, indicating an enhanced ability to meet short-term obligations with its available cash reserves. This improvement reflects positively on the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023