Simulations Plus Inc (SLP)

Cash ratio

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cash and cash equivalents	US$ in thousands	10,311	109,092	37,031	39,789	57,523	55,131	39,292	49,392	51,567	42,353	60,373	41,680	36,984	58,811	42,385	27,651	49,207	7,354	12,249	12,610
Short-term investments	US$ in thousands	9,944	9,875	71,473	74,101	57,940	67,234	76,052	82,139	76,668	79,801	64,192	82,660	86,620	60,948	75,367	91,115	66,804	0	—	0
Total current liabilities	US$ in thousands	12,069	11,320	14,528	8,588	11,987	9,022	6,002	8,039	7,735	5,915	9,004	9,615	11,574	7,340	6,541	5,477	5,506	7,785	5,481	5,633
Cash ratio		1.68	10.51	7.47	13.26	9.63	13.56	19.22	16.36	16.58	20.65	13.83	12.93	10.68	16.32	18.00	21.68	21.07	0.94	2.23	2.24

August 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,311K + $9,944K) ÷ $12,069K
= 1.68

The cash ratio of Simulations Plus Inc has shown fluctuations over the past 20 periods, ranging from a low of 0.94 to a high of 21.68. The cash ratio measures the proportion of a company's total cash and cash equivalents to its current liabilities, providing insight into the firm's ability to cover its short-term obligations solely with its readily available cash.

The company's cash ratio has generally been above 1, indicating that it has more cash on hand than current liabilities during these periods. However, the ratio has varied significantly, suggesting some volatility in the company's cash position.

Notably, the cash ratio peaked at 21.68 in November 2020, indicating a particularly strong liquidity position at that time. Conversely, the lowest ratio of 0.94 in August 2020 may raise concerns about the company's ability to meet its short-term obligations from cash resources alone.

Overall, while the company's cash ratio has displayed fluctuations, it is important to assess this ratio in conjunction with other liquidity and financial metrics to get a comprehensive understanding of Simulations Plus Inc's financial health and liquidity management.