Liveramp Holdings Inc (RAMP)

Cash ratio

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 Jun 30, 2020
Cash and cash equivalents US$ in thousands 413,331 376,772 338,946 313,014 336,867 498,946 492,169 470,773 464,448 453,516 485,602 508,254 600,162 552,959 535,590 541,024 572,787 663,401 650,691 649,895
Short-term investments US$ in thousands 7,500 7,500 9,494 32,333 32,045 32,264 31,920 33,099 32,807 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 3,000 — —
Total current liabilities US$ in thousands 247,518 231,624 199,468 189,638 216,576 208,752 186,697 172,377 174,829 175,777 150,198 143,045 184,566 184,036 136,249 130,183 165,249 157,332 141,167 125,884
Cash ratio 1.70 1.66 1.75 1.82 1.70 2.54 2.81 2.92 2.84 2.62 3.28 3.61 3.29 3.05 3.99 4.21 3.51 4.24 4.61 5.16

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($413,331K + $7,500K) ÷ $247,518K
= 1.70

The cash ratio of Liveramp Holdings Inc has shown a declining trend over the past few years, indicating a decreasing ability to cover short-term liabilities with available cash and cash equivalents. As of March 31, 2025, the cash ratio stands at 1.70, suggesting that for every $1 of current liabilities, the company has $1.70 in cash and cash equivalents. While this ratio has fluctuated within the range of 1.70 to 5.16 over the period from June 30, 2020, to March 31, 2025, the general downward trend raises concerns about the company's liquidity position and its ability to meet short-term obligations solely from its cash reserves.

A decreasing cash ratio could indicate potential difficulties in managing working capital, covering operational expenses, or responding to unexpected financial needs. Investors and creditors may view a declining cash ratio unfavorably as it may signal increased financial risk. Liveramp Holdings Inc may need to closely monitor its cash management practices, explore opportunities to improve cash generation, and ensure sufficient liquidity to navigate potential liquidity challenges in the future.