Liveramp Holdings Inc (RAMP)

Cash ratio

		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	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	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	717,811
Short-term investments	US$ in thousands	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	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	161,382
Cash ratio		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	4.45

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($376,772K + $7,500K) ÷ $231,624K
= 1.66

The cash ratio of Liveramp Holdings Inc has shown a declining trend over the past few quarters. Starting at a relatively healthy level of 4.45 as of March 31, 2020, the cash ratio increased to its peak of 5.16 by June 30, 2020, before gradually decreasing to 1.70 by March 31, 2024. This declining trend indicates that Liveramp Holdings Inc may be facing liquidity challenges or inefficient management of its cash resources.

A cash ratio below 1.0 suggests that a company may have difficulty meeting its short-term obligations using only its cash and cash equivalents. As of December 31, 2024, Liveramp Holdings Inc's cash ratio stood at 1.66, which indicates that the company may be relying more on other current assets or external sources of financing to meet its short-term obligations.

It is important for investors and stakeholders to monitor the company's cash ratio closely to assess its liquidity position and ability to withstand potential financial shocks. Liveramp Holdings Inc may need to re-evaluate its cash management policies and strategies to improve its liquidity position and ensure its financial stability in the long run.