Liveramp Holdings Inc (RAMP)

Cash ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	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	717,811	767,200	777,443	1,005,480
Short-term investments	US$ in thousands	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	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	161,382	149,075	123,423	121,110
Cash ratio		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	4.45	5.15	6.30	8.30

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 of Liveramp Holdings Inc has fluctuated over the past several quarters, ranging from a low of 1.70 to a high of 8.30. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has more liquid assets available to cover its short-term obligations.

The trend in Liveramp's cash ratio shows an overall increase from the first quarter of 2019 to the first quarter of 2024, with some fluctuations along the way. The ratio peaked at 8.30 in the third quarter of 2019, which suggests a significant increase in the company's ability to meet its short-term obligations with cash on hand. However, it decreased to 1.70 in the first quarter of 2020 before gradually increasing again.

Overall, Liveramp Holdings Inc has maintained a healthy cash ratio above 1.0 in all reported quarters, indicating a strong ability to cover its short-term liabilities with available cash. The recent ratios above 4.0, such as 4.61 in the third quarter of 2020 and 8.30 in the third quarter of 2019, suggest that the company has built up a substantial cash reserve relative to its short-term obligations, which could provide a cushion in times of financial uncertainty.