Liveramp Holdings Inc (RAMP)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	336,867	464,448	600,162	572,787	717,811
Short-term investments	US$ in thousands	32,045	32,807	7,500	7,500	—
Total current liabilities	US$ in thousands	216,576	174,829	184,566	165,249	161,382
Cash ratio		1.70	2.84	3.29	3.51	4.45

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($336,867K + $32,045K) ÷ $216,576K
= 1.70

The cash ratio for Liveramp Holdings Inc has shown a declining trend over the past five years. The ratio decreased from 4.45 in March 2020 to 1.70 in March 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has decreased over the period. A decreasing cash ratio may suggest that Liveramp Holdings Inc has been utilizing its cash resources for other investments or operational activities rather than keeping a significant amount of cash on hand. However, it is important to analyze the company's overall liquidity position and cash management strategies in conjunction with other financial ratios to gain a comprehensive understanding of its financial health.