Simulations Plus Inc (SLP)

Current ratio

		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	Aug 31, 2019	May 31, 2019
Total current assets	US$ in thousands	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	21,165	21,258
Total current liabilities	US$ in thousands	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	4,783	5,074
Current ratio		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	4.43	4.19

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $127,957K ÷ $14,528K
= 8.81

The current ratio of Simulations Plus Inc has shown fluctuations over the past few quarters. The current ratio measures the company's ability to meet its short-term liabilities with its short-term assets. A higher current ratio is typically considered favorable as it indicates the company has more current assets to cover its current liabilities.

Looking at the data provided, Simulations Plus Inc's current ratio has been consistently above 1, indicating that the company has had more than enough current assets to cover its current liabilities. The current ratio has ranged from a low of 2.85 in May 2020 to a high of 24.49 in May 2022.

The current ratio peaked at 24.49 in May 2022, indicating a strong liquidity position at that time. Subsequently, the current ratio has shown some variability, but overall, it has remained relatively high, with the most recent value being 8.81 as of February 2024.

Overall, the current ratio of Simulations Plus Inc has demonstrated a generally healthy liquidity position over the periods presented, indicating a strong ability to cover short-term obligations with current assets. It's important to note that the interpretation of the current ratio should be considered along with other financial metrics to gain a more comprehensive understanding of the company's financial health.