Pegasystems Inc (PEGA)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,333,700	1,029,030	846,478	840,218	1,001,430
Total current liabilities	US$ in thousands	1,086,060	577,059	538,940	485,404	415,138
Current ratio		1.23	1.78	1.57	1.73	2.41

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,333,700K ÷ $1,086,060K
= 1.23

The current ratio of Pegasystems Inc. has exhibited notable fluctuations over the observed period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 2.41, indicating a strong liquidity position with more than twice the current assets relative to current liabilities. By the conclusion of 2021, the ratio declined to 1.73, reflecting a decrease in liquidity but still maintaining a comfortable margin. This downward trend continued into 2022, with the ratio further decreasing to 1.57, which suggests a continued erosion in liquidity cushion.

In 2023, the current ratio experienced a modest increase to 1.78, indicating some improvement in liquidity position relative to the prior year. However, by 2024, the ratio declined again to 1.23, approaching a lower threshold that might suggest tighter liquidity management or increased current liabilities relative to current assets.

Overall, the trend from 2020 to 2024 shows a consistent decrease in the current ratio, signaling a gradual decline in the company’s short-term liquidity buffer over this period. While the ratio remains above 1.0 through 2024, implying that current assets continue to exceed current liabilities, the narrowing margin warrants attention to liquidity management strategies and potential implications for financial flexibility.