Liveramp Holdings Inc (RAMP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.65 | 2.78 | 2.92 | 3.09 | 2.78 | 3.69 | 3.90 | 4.10 | 4.09 | 3.96 | 4.69 | 5.07 | 4.42 | 4.47 | 5.69 | 5.93 | 5.00 | 5.46 | 5.89 | 6.56 |
| Quick ratio | 2.45 | 2.60 | 2.71 | 2.92 | 2.62 | 3.51 | 3.74 | 3.93 | 3.91 | 3.76 | 4.53 | 4.89 | 4.26 | 4.24 | 5.42 | 5.63 | 4.66 | 5.28 | 5.61 | 6.24 |
| 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 |
Liveramp Holdings Inc has shown consistently strong liquidity positions over the years based on its liquidity ratios. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 5, indicating a strong ability to cover its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects the company's ability to meet its short-term obligations comfortably. The quick ratio has generally been above 4, indicating that Liveramp Holdings Inc can cover its short-term liabilities without relying on selling inventory.
The cash ratio, which is an even more conservative measure of liquidity that considers only cash and cash equivalents as immediate resources, also demonstrates Liveramp Holdings Inc's ability to meet its short-term obligations with cash on hand. The cash ratio has generally been above 2, indicating a healthy position in terms of having sufficient cash to cover short-term liabilities.
Overall, Liveramp Holdings Inc's liquidity ratios suggest that the company has a solid financial position in terms of its ability to meet its short-term obligations, which is essential for operational stability and financial health.
Additional liquidity measure
| 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 conversion cycle | days | -98.66 | -78.11 | -71.50 | -55.17 | -49.82 | -19.43 | -64.18 | -16.92 | -71.81 | -60.36 | -11.38 | -5.65 | -82.60 | 39.48 | 84.71 | 117.81 | 77.03 | 56.96 | 66.79 | 92.98 |
The cash conversion cycle of Liveramp Holdings Inc has shown fluctuations over the analyzed period, reflecting changes in the company's efficiency in converting its resources into cash.
At the beginning of the analysis, on June 30, 2020, the company had a cash conversion cycle of 92.98 days, indicating it took nearly three months to convert its investments in inventory and accounts receivable into cash. Over the subsequent quarters, the company managed to streamline its operations, with the cycle reducing to 56.96 days by December 31, 2020.
However, by June 30, 2021, the cash conversion cycle increased significantly to 117.81 days, suggesting possible issues with managing inventory and collecting receivables efficiently. The following quarters showed improvements once again, with the cycle dropping to 39.48 days by December 31, 2021.
Interestingly, there was a significant change in the cash conversion cycle dynamics by March 31, 2022, where it turned negative to -82.60 days. This negative cycle continued over the following quarters, indicating that Liveramp Holdings Inc was effectively managing its cash inflows and outflows, possibly through tighter control over inventory and quicker collection of receivables.
The negative cash conversion cycle continued throughout the analyzed period until March 31, 2025, reaching as low as -98.66 days. This suggests that the company was operating in a manner where it was receiving cash from customers before having to pay its suppliers, potentially indicating strong bargaining power with suppliers or efficient cash management strategies.
Overall, the trend in Liveramp Holdings Inc's cash conversion cycle indicates a continuous effort to improve operating efficiency and cash flow management over time.