Pegasystems Inc (PEGA)

Quick 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 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 —
Receivables US$ in thousands 424,936 539,960 378,534 364,392 390,661 558,594 401,669 416,658 434,671 255,150 346,450 407,817 408,998 182,717 383,219 402,677 387,927 536,260 346,776 379,939
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
Quick ratio 1.31 1.18 1.06 1.01 0.97 1.70 1.56 1.58 1.60 1.02 1.50 1.62 1.70 1.12 1.84 1.89 2.05 2.41 2.29 2.51

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($231,129K + $140,607K + $424,936K) ÷ $609,136K
= 1.31

The quick ratio of Pegasystems Inc. over the period from June 2020 through March 2025 demonstrates a general trend of decline followed by partial recovery. Initially, in June 2020, the quick ratio was notably high at 2.51, indicating a robust liquidity position with ample liquid assets to cover current liabilities. Throughout the subsequent quarters, there was a gradual decrease, reaching a low of 1.02 in December 2022, which suggests a diminishing ability to meet short-term obligations with liquid assets.

Between late 2022 and early 2023, the quick ratio exhibited a modest recovery, rising to approximately 1.60 in March 2023 and maintaining near 1.58 in June 2023. However, this upward movement was interrupted by a decline to 0.97 in March 2024, signaling a temporary deterioration in liquidity. In the most recent quarters, the ratio has shown slight improvement, reaching 1.18 in December 2024 and 1.31 in March 2025, indicative of a modest stabilization or improvement in liquidity position.

Overall, the company's quick ratio has experienced a downward trend from mid-2020, reflecting decreasing liquidity buffers, but recent periods suggest some recovery. The ratio's fluctuation within the range of approximately 0.97 to 2.51 over the analyzed period indicates variability in liquidity management, with the current levels moving closer to a more comfortable buffer zone above 1.0, which generally signifies an adequate short-term liquidity position.