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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	153,048	127,433	109,190	98,080	98,847	87,729	86,618	70,439	66,736	61,572	49,600
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	598,196
Total current liabilities	US$ in thousands	81,717	79,626	73,623	63,851	61,814	59,421	58,481	56,063	60,878	57,962	57,701
Cash ratio		1.87	1.60	1.48	1.54	1.60	1.48	1.48	1.26	1.10	1.06	11.23

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.