N-Able Inc (NABL)

Cash ratio

		Dec 31, 2024	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
Cash and cash equivalents	US$ in thousands	85,196	174,445	157,509	139,227	153,048	127,433	109,190	98,080	98,847	87,729	86,618	70,439	66,736	61,572	49,600	111,218	99,790
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	598,196	—	—
Total current liabilities	US$ in thousands	150,098	93,778	84,969	73,759	81,717	79,626	73,623	63,851	61,814	59,421	58,481	56,063	60,878	57,962	57,701	61,378	54,827
Cash ratio		0.57	1.86	1.85	1.89	1.87	1.60	1.48	1.54	1.60	1.48	1.48	1.26	1.10	1.06	11.23	1.81	1.82

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($85,196K + $—K) ÷ $150,098K
= 0.57

The cash ratio of N-Able Inc has shown some fluctuations over the years as per the provided data. The cash ratio is a financial ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

From December 31, 2020, to December 31, 2022, the cash ratio remained relatively stable, ranging between 1.06 to 1.82. However, there was a significant increase in the cash ratio to 11.23 on June 30, 2021, indicating a substantial increase in available cash compared to short-term liabilities.

Subsequently, the cash ratio fluctuated within a narrower range between 1.06 to 1.60 until December 31, 2023. The ratio then increased to 1.87 on March 31, 2024, and peaked at 1.89 on the following quarter, June 30, 2024. However, there was a notable decrease in the cash ratio to 0.57 on December 31, 2024, which may indicate a decrease in available cash relative to short-term liabilities.

Overall, a higher cash ratio suggests a stronger ability to cover short-term obligations with cash on hand. Conversely, a lower cash ratio may indicate a liquidity risk if the company faces unexpected financial challenges or needs to meet immediate payment obligations. It is essential for N-Able Inc to maintain a balance in its cash reserves to ensure financial stability and liquidity management in the future.