PTC Inc (PTC)

Current ratio

		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	Mar 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,298,700	1,091,770	1,152,810	1,134,410	1,277,370	1,103,280	1,166,410	1,126,790	1,068,660	948,432	966,962	1,009,320	1,073,010	918,496	901,763	936,204	833,447	847,238	1,341,430	739,169
Total current liabilities	US$ in thousands	1,667,190	1,569,250	1,515,020	950,333	1,671,180	1,611,660	1,593,050	786,742	792,258	769,671	782,381	779,978	779,282	746,199	766,820	712,238	680,760	666,291	1,192,170	631,512
Current ratio		0.78	0.70	0.76	1.19	0.76	0.68	0.73	1.43	1.35	1.23	1.24	1.29	1.38	1.23	1.18	1.31	1.22	1.27	1.13	1.17

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,298,700K ÷ $1,667,190K
= 0.78

The current ratio of PTC Inc has shown fluctuating trends over the past several quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

From December 2019 to June 2020, the current ratio ranged between 1.13 and 1.31, indicating a healthy position with more current assets than current liabilities. However, from September 2020 to June 2021, the current ratio declined to a range of 1.17 to 1.23, suggesting a slight weakening in the company's short-term liquidity position.

In the most recent quarters from March 2022 to September 2024, the current ratio has shown a downward trend, dropping to below 1 in some quarters, with the lowest point being 0.68 in June 2023. This indicates a potential challenge for PTC Inc in meeting its short-term obligations with its current assets. The current ratio of 0.78 as of September 30, 2024, reflects a liquidity position where current liabilities exceed current assets.

Overall, the decreasing trend in the current ratio over the recent quarters raises concerns about the company's ability to cover its short-term obligations, and indicates a need for closer monitoring of its liquidity position to ensure financial stability.