Liveramp Holdings Inc (RAMP)

Quick 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 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 — — —
Receivables US$ in thousands 217,195 192,067 208,234 198,834 200,526 174,703 173,083 186,276 200,506 187,682 183,545 178,697 219,506 195,027 184,655 189,031 163,567 141,940 136,248 139,407
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
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($376,772K + $7,500K + $217,195K) ÷ $231,624K
= 2.60

Liveramp Holdings Inc's quick ratio has exhibited fluctuations over the analyzed period. The quick ratio, a measure of the company's ability to meet its short-term obligations with its most liquid assets, was relatively high at the beginning of the period, ranging from 5.31 to 6.24 in the first half of 2020. Subsequently, there was a decline in the quick ratio, dropping to around 4.24 to 4.66 in the first half of 2021.

The ratio demonstrated some recovery in mid-2021, rising to levels between 4.89 and 5.63. However, there was a general downward trend in the quick ratio in the latter half of 2021 and throughout 2022, with values decreasing to as low as 3.76 by the end of 2022.

The trend continued into 2023 and 2024, with the quick ratio hovering around 2.62 to 3.93, indicating a potential liquidity challenge as the ratio approached and stayed below 3. This declining trend suggests Liveramp Holdings Inc may face difficulties in meeting its short-term obligations with its readily available assets, potentially raising concerns about the company's liquidity position. Further analysis of the company's financial statements and operations would be necessary to better understand the reasons behind this trend and its implications for the company's financial health.