Qualys Inc (QLYS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	203,665	173,719	137,328	74,132	87,559
Short-term investments	US$ in thousands	221,893	147,608	267,960	281,892	211,331
Total current liabilities	US$ in thousands	389,208	352,188	304,280	255,730	223,467
Cash ratio		1.09	0.91	1.33	1.39	1.34

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($203,665K + $221,893K) ÷ $389,208K
= 1.09

The cash ratio of Qualys Inc has been relatively stable over the past five years, ranging from 1.00 to 1.47. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, the cash ratio increased to 1.16 from 1.00 in 2022, indicating an improvement in the company's liquidity position. This suggests that Qualys Inc had sufficient cash and cash equivalents to cover its short-term liabilities in 2023.

While the cash ratio fluctuated slightly over the years, it remained above 1, implying that Qualys Inc had more than enough cash on hand to cover its short-term obligations in each of the years analyzed. This reflects positively on the company's financial health and ability to meet its immediate financial commitments.