Liveramp Holdings Inc (RAMP)

Quick ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash	US$ in thousands	413,331	336,867	464,448	600,162	572,787
Short-term investments	US$ in thousands	—	32,045	32,807	7,500	7,500
Receivables	US$ in thousands	—	198,834	186,276	178,697	189,031
Total current liabilities	US$ in thousands	—	216,576	174,829	184,566	165,249
Quick ratio		—	2.62	3.91	4.26	4.66

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($413,331K + $—K + $—K) ÷ $—K
= —

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. The trend in Liveramp Holdings Inc's quick ratio from March 31, 2021, to March 31, 2025, indicates a gradual decline.

As of March 31, 2021, the quick ratio stood at a healthy 4.66, indicating that Liveramp had $4.66 in liquid assets for every dollar of current liabilities. Over the next four years, the quick ratio decreased to 4.26, 3.91, and 2.62, respectively. The quick ratio of 2.62 on March 31, 2024, suggests that Liveramp may have faced challenges in meeting its short-term obligations with its readily available assets.

The absence of a quick ratio figure for March 31, 2025, raises some concerns as it indicates a lack of available data. This could be due to various factors, such as changes in reporting practices or data unavailability.

Overall, the declining trend in Liveramp Holdings Inc's quick ratio highlights a potential liquidity risk, and further analysis of the company's financial health and asset management efficiency would be beneficial to assess its ability to meet short-term obligations moving forward.