Simulations Plus Inc (SLP)

Quick 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
Cash	US$ in thousands	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	11,434	10,308
Short-term investments	US$ in thousands	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	0	—
Receivables	US$ in thousands	13,114	10,346	10,201	10,214	11,398	11,699	13,787	18,587	15,039	11,823	9,851	12,962	11,306	7,331	7,422	10,853	7,244	6,353	5,027	7,735
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
Quick ratio		8.37	14.47	10.48	14.70	21.12	17.82	18.36	23.79	15.50	14.16	11.53	18.08	19.73	23.02	22.42	2.34	3.56	3.37	3.44	3.56

February 29, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($37,031K + $71,473K + $13,114K) ÷ $14,528K
= 8.37

The quick ratio of Simulations Plus Inc has shown variations over the past several quarters. The quick ratio measures the firm's ability to meet its short-term financial obligations using its most liquid assets.

The quick ratio values have been fluctuating, indicating changes in the company's liquidity position. In the latest reported period, the quick ratio was 8.37, which indicates that the company had sufficient liquid assets to cover its current liabilities.

The quick ratio has generally been at healthy levels above 1, with some quarters showing significantly higher ratios, such as 21.12 and 23.79, suggesting a strong liquidity position during those periods. However, in some quarters, the quick ratio dropped to levels around 3, indicating a potential decrease in liquidity.

Overall, it is essential for investors and stakeholders to monitor the quick ratio trend over time to assess Simulations Plus Inc's ability to meet its short-term financial obligations without relying heavily on inventory or prepaid assets.