QuinStreet Inc (QNST)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	50,488	73,677	96,439	110,318	107,509
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	126,398	89,820	109,579	115,611	85,837
Cash ratio		0.40	0.82	0.88	0.95	1.25

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($50,488K + $—K) ÷ $126,398K
= 0.40

The cash ratio of QuinStreet Inc has been declining over the past five years, indicating a decrease in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents. As of June 30, 2024, the cash ratio stands at 0.40, which means that the company only has $0.40 in cash for every $1 of current liabilities. This downward trend may suggest potential liquidity challenges or a shift in the company's cash management strategies. Further analysis is recommended to understand the underlying reasons for this trend and its potential impact on the company's financial health and stability.