Liveramp Holdings Inc (RAMP)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	336,867	464,448	600,162	572,787	717,811
Short-term investments	US$ in thousands	32,045	32,807	7,500	7,500	—
Receivables	US$ in thousands	198,834	186,276	178,697	179,976	131,101
Total current liabilities	US$ in thousands	216,576	174,829	184,566	165,249	161,382
Quick ratio		2.62	3.91	4.26	4.60	5.26

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($336,867K + $32,045K + $198,834K) ÷ $216,576K
= 2.62

The quick ratio of Liveramp Holdings Inc has exhibited a declining trend over the past five years. The ratio decreased from 5.26 in March 2020 to 2.62 in March 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over the period.

While a quick ratio above 1 is generally considered healthy, the decreasing trend suggests a potential liquidity concern. The ratio has fallen consistently, signaling a reduction in the company's ability to cover its current liabilities with its quick assets. It is important for stakeholders to monitor this trend closely to assess the company's liquidity position and financial health.