PTC Inc (PTC)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	265,808	288,103	272,182	326,532	275,458
Short-term investments	US$ in thousands	—	—	—	—	28,129
Total current liabilities	US$ in thousands	1,667,190	1,671,180	792,258	779,282	680,760
Cash ratio		0.16	0.17	0.34	0.42	0.45

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($265,808K + $—K) ÷ $1,667,190K
= 0.16

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover liabilities.

PTC Inc's cash ratio has shown a decreasing trend over the past five years, declining from 0.45 in 2020 to 0.16 in 2024. This suggests a decreasing liquidity position and potential challenges in meeting short-term obligations solely through cash and cash equivalents.

Although the cash ratio has decreased over the years, PTC Inc still maintains a ratio above 0.1, indicating that it has a certain level of liquidity to cover short-term obligations. However, management may need to monitor this trend closely and consider strategies to improve liquidity in the future.