Liveramp Holdings Inc (RAMP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 5.55 |
| Quick ratio | 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 | 5.31 |
| 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 |
Liveramp Holdings Inc liquidity ratios have shown some fluctuations over the past few years.
1. Current Ratio:
- The current ratio has generally been above 4, indicating that Liveramp Holdings Inc has been able to meet its short-term obligations using its current assets.
- Although there was a decrease in the current ratio from 2022 to 2024, the company still maintains a current ratio above 2, suggesting a healthy liquidity position.
2. Quick Ratio:
- The quick ratio has also demonstrated a similar trend as the current ratio, staying above 2 in most periods.
- Despite a slight decrease in the quick ratio over the years, Liveramp Holdings Inc continues to have a good ability to cover its short-term liabilities with its most liquid assets.
3. Cash Ratio:
- The cash ratio has shown a gradual decline over time, indicating a reduction in the company's ability to cover its current liabilities with only cash and cash equivalents.
- While the cash ratio has decreased, it still remains above 1 in all periods, suggesting that Liveramp Holdings Inc has a certain level of cash reserves to meet its immediate obligations.
In summary, Liveramp Holdings Inc has maintained a strong liquidity position with current and quick ratios consistently above 2. However, the decreasing trend in the cash ratio indicates a potential need for the company to monitor and manage its cash reserves effectively to ensure continued liquidity in the future.
Additional liquidity measure
| 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 conversion cycle | days | -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 | 68.24 |
The cash conversion cycle for Liveramp Holdings Inc experienced fluctuations over the reported periods. From March 31, 2020, to June 30, 2021, the company saw an increasing trend in the cash conversion cycle, reaching a peak of 117.81 days. This indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.
However, the trend shifted positively starting from December 31, 2021, with the cash conversion cycle decreasing significantly. By the end of December 31, 2024, the company had managed to reverse its cash conversion cycle to negative days, suggesting that Liveramp Holdings Inc was able to convert its resources into cash at a faster rate than before.
The negative cash conversion cycle is a beneficial sign as it implies that the company is efficient in managing its working capital and can convert investments into cash more quickly, potentially indicating improved liquidity and operational efficiency. It is essential for the company to maintain this trend to ensure optimal cash flow management and overall financial health.