Liveramp Holdings Inc (RAMP)
Liquidity ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.78 | 4.09 | 4.42 | 5.00 | 5.55 |
| Quick ratio | 2.62 | 3.91 | 4.26 | 4.60 | 5.26 |
| Cash ratio | 1.70 | 2.84 | 3.29 | 3.51 | 4.45 |
Liveramp Holdings Inc's liquidity ratios have shown a general trend of decline over the past five years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, decreased from 5.55 in 2020 to 2.78 in 2024. This indicates a reduction in the company's short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also declined from 5.26 in 2020 to 2.62 in 2024. The decreasing trend in both the current and quick ratios suggests that Liveramp Holdings Inc may be facing challenges in maintaining its short-term liquidity.
Furthermore, the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, decreased from 4.45 in 2020 to 1.70 in 2024. While the cash ratio is generally lower than the current and quick ratios due to its more restrictive nature, the declining trend indicates a diminishing ability of Liveramp Holdings Inc to meet its short-term obligations solely with cash reserves.
Overall, the declining trend in Liveramp Holdings Inc's liquidity ratios raises concerns about its ability to quickly meet its short-term financial obligations. It may indicate a need for the company to review its working capital management and ensure sufficient liquidity to support its operations in the upcoming periods.
Additional liquidity measure
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 52.27 | 53.40 | 56.57 | 115.41 | 92.99 |
The cash conversion cycle of Liveramp Holdings Inc has shown fluctuations over the past five years. From March 31, 2020 to March 31, 2021, there was a significant increase in the cycle from 92.99 days to 115.41 days, indicating a longer period to convert resources into cash. However, in the subsequent years, there has been a decreasing trend in the cycle, reaching 52.27 days as of March 31, 2024.
A decreasing cash conversion cycle suggests that Liveramp Holdings Inc has been able to optimize its working capital management more efficiently, leading to a quicker conversion of investments into cash. This may imply improved operational efficiency or better inventory and receivables management.
Overall, the decreasing trend in the cash conversion cycle over the past few years is a positive indicator of potential improvements in the company's liquidity and operational effectiveness.