Pegasystems Inc (PEGA)

Cash ratio

Mar 31, 2025 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 Sep 30, 2020 Jun 30, 2020
Cash and cash equivalents US$ in thousands 231,129 337,103 287,649 259,025 291,905 229,902 169,023 186,874 168,318 145,054 107,626 109,275 132,771 159,965 116,411 139,878 172,708 171,899 281,218 512,111
Short-term investments US$ in thousands 140,607 402,870 415,341 406,819 327,044 193,436 167,286 125,939 155,564 152,167 168,085 187,613 199,401 202,814 235,437 271,459 269,650 293,269 186,810 —
Total current liabilities US$ in thousands 609,136 1,086,060 1,024,540 1,016,570 1,044,280 577,059 472,781 461,112 474,964 538,940 413,972 435,451 435,015 485,404 400,426 430,244 404,450 415,138 356,322 356,097
Cash ratio 0.61 0.68 0.69 0.65 0.59 0.73 0.71 0.68 0.68 0.55 0.67 0.68 0.76 0.75 0.88 0.96 1.09 1.12 1.31 1.44

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($231,129K + $140,607K) ÷ $609,136K
= 0.61

The cash ratio of Pegasystems Inc. has demonstrated notable fluctuation over the analyzed period from June 30, 2020, to March 31, 2025. Initially, the ratio stood at 1.44, indicating that the company's cash and cash equivalents were well in excess of its current liabilities at that point in time. Subsequently, a downward trend was observed, with the ratio decreasing steadily through the following quarters, reaching a low of 0.55 on December 31, 2022. This decline suggests a diminishing liquidity cushion in terms of cash holdings relative to current liabilities, potentially reflecting increased operational needs, strategic investments, or a shift in liquidity management.

From late 2022 onward, the cash ratio shows signs of stabilization and slight recovery, reaching 0.73 by December 31, 2023. This indicates a modest improvement in Pegasystems’ ability to cover current liabilities with cash and cash equivalents alone. The ratio continues to fluctuate within a narrow range, with values such as 0.68 in March 2024 and 0.69 in September 2024. The most recent data point as of March 31, 2025, places the ratio at 0.61, signaling a slight further decrease but maintaining a relatively stable liquidity position compared to the early pandemic period.

Overall, the trend reflects a significant reduction from a high of 1.44 to roughly 0.55-0.75 in recent years, indicative of decreasing cash reserves relative to current liabilities. Despite this decline, the ratio consistently remains above 0.5, which generally suggests that the company maintains a reasonable level of liquidity in terms of cash holdings. However, the downward movement warrants attention regarding cash management strategies and operational liquidity needs moving forward.