Qualys Inc (QLYS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	232,182	203,665	173,719	137,328	74,132
Short-term investments	US$ in thousands	149,241	221,893	147,608	267,960	281,892
Total current liabilities	US$ in thousands	428,390	389,208	352,188	304,280	255,730
Cash ratio		0.89	1.09	0.91	1.33	1.39

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($232,182K + $149,241K) ÷ $428,390K
= 0.89

The cash ratio of Qualys Inc has shown fluctuations over the past five years. As of December 31, 2020, the company had a healthy cash ratio of 1.39, indicating that it had $1.39 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2022, the cash ratio had decreased to 0.91, signaling a potential liquidity concern as the company had less cash on hand relative to its short-term obligations.

There was a slight improvement in the cash ratio by December 31, 2023, as it increased to 1.09, suggesting a strengthening of the company's liquidity position. However, by December 31, 2024, the cash ratio dropped again to 0.89, which may raise concerns about Qualys Inc's ability to meet its short-term financial obligations solely based on its cash reserves.

Overall, the downward trend in the cash ratio over the years warrants further investigation into the company's cash management practices and liquidity position to ensure it can comfortably cover its short-term liabilities without relying excessively on external sources of funding.