Simulations Plus Inc (SLP)

Current 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
Total current assets	US$ in thousands	39,341	135,616	127,957	129,687	130,372	137,309	131,474	148,734	146,790	144,854	143,626	139,906	139,313	138,698	135,553	131,232	129,092	22,184	24,676	23,093
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
Current ratio		3.26	11.98	8.81	15.10	10.88	15.22	21.91	18.50	18.98	24.49	15.95	14.55	12.04	18.90	20.72	23.96	23.45	2.85	4.50	4.10

August 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $39,341K ÷ $12,069K
= 3.26

The current ratio of Simulations Plus Inc has shown fluctuation over the periods provided. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

Looking at the data, we can see that the current ratio has ranged from a low of 2.85 to a high of 24.49 over the periods specified. The current ratio peaked at 24.49 in May 2022, indicating a strong ability to cover short-term obligations with current assets. This was followed by fluctuations in subsequent periods, with the ratio ranging from 3.26 to 15.22, reflecting changes in the company's liquidity position.

It is important to note that a very high current ratio, such as the one observed in May 2022, may suggest that the company has an excessive amount of current assets relative to its current liabilities, which could indicate inefficient asset utilization. On the other hand, a very low current ratio, as seen in August 2020, could raise concerns about the company's ability to meet its short-term obligations.

Overall, the trend in Simulations Plus Inc's current ratio shows variability, with fluctuations indicating changes in the company's liquidity position over the periods provided. Further analysis of the company's financial performance and future outlook would be necessary to fully assess the implications of these fluctuations on its financial health.