QuinStreet Inc (QNST)

Cash ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	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
Cash and cash equivalents	US$ in thousands	101,078	81,815	57,835	24,982	50,488	39,602	45,520	56,305	73,677	62,962	79,104	88,382	96,439	109,463	115,035	105,928	110,318	103,202	102,647	102,244
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	163,044	156,674	159,691	157,888	126,398	109,114	85,035	83,257	89,820	112,793	96,174	104,377	109,579	104,270	96,656	110,456	115,611	111,712	97,785	104,598
Cash ratio		0.62	0.52	0.36	0.16	0.40	0.36	0.54	0.68	0.82	0.56	0.82	0.85	0.88	1.05	1.19	0.96	0.95	0.92	1.05	0.98

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($101,078K + $—K) ÷ $163,044K
= 0.62

The cash ratio of QuinStreet Inc has exhibited notable fluctuations over the analyzed period. Starting at 0.98 on September 30, 2020, the ratio showed a slight increase to 1.05 by the end of 2020, indicating a position where the company's cash and cash equivalents nearly covered its current liabilities. Throughout 2021, the cash ratio remained relatively stable, fluctuating between 0.92 and 1.19, with the highest point recorded at 1.19 on December 31, 2021. This suggests that during this period, the company maintained a strong liquidity position relative to its short-term obligations.

However, a downward trend becomes evident starting in 2022. The ratio declined from 1.05 on March 31, 2022, to 0.88 on June 30, 2022, and further decreased to 0.85 by September 30, 2022. The downward trajectory continued through the end of 2022 and into 2023, reaching 0.56 on March 31, 2023. This sustained decline indicates a diminishing cash reserve relative to current liabilities, reflecting increasing liquidity risk.

In subsequent quarters, the ratio experienced partial recoveries, rising to 0.82 on June 30, 2023, before dropping again to 0.68 on September 30, 2023, and further decreasing to 0.54 by December 31, 2023. The trend persisted into the first half of 2024, with ratios of 0.36 on March 31 and 0.40 on June 30, highlighting a significant diminution in the company's ability to cover short-term liabilities with cash alone. The ratio further declined to 0.16 on September 30, 2024, before a modest recovery to 0.36 at the end of that year. In the most recent periods, the ratio increased to 0.52 on March 31, 2025, and 0.62 on June 30, 2025, signifying some improvement but still indicating less-than-ideal liquidity levels.

Overall, the trend reflects a transition from a period of strong liquidity in late 2020 and 2021 to a phase of declining cash reserves relative to short-term obligations starting in 2022. The sustained decline over consecutive periods suggests increasing liquidity constraints and a potential need for the company to bolster its cash position to mitigate liquidity risks. While there is some evidence of recovery in mid-2025, the cash ratio remains below levels observed in the initial years, implying ongoing liquidity management challenges.