N-Able Inc (NABL)

Quick 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	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	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	48,014	55,806	55,902	49,644	42,612	41,598	43,179	42,175
Total current liabilities	US$ in thousands	81,717	79,626	73,623	63,851	61,814	59,421	58,481	56,063
Quick ratio		2.46	2.30	2.24	2.31	2.29	2.18	2.22	2.01

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($153,048K + $—K + $48,014K) ÷ $81,717K
= 2.46

The quick ratio of N-Able Inc has been relatively stable over the past few quarters, ranging from 1.73 to 2.46. Generally, a quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.

The quick ratio peaked at 2.46 in December 2023, suggesting the company had a strong ability to meet its short-term obligations with its most liquid assets. This may indicate efficient management of current assets and liabilities.

The lowest quick ratio of 1.73 in September 2021, while concerning, was likely an anomaly given the significant increase in the ratio in subsequent periods. The sudden spike to 11.78 in December 2021 appears to be an outlier and may be due to a temporary increase in cash or decrease in current liabilities.

Overall, the trend in N-Able Inc's quick ratio indicates a healthy liquidity position, with the company maintaining a comfortable level of liquid assets to cover short-term liabilities. It is important for the company to continue monitoring and managing its liquidity effectively to ensure ongoing financial stability.