ANGI Homeservices Inc (ANGI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 416,434 | 364,044 | 321,155 | 428,136 | 812,705 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 49,995 |
| Total current liabilities | US$ in thousands | 231,678 | 258,655 | 281,784 | 276,509 | 233,678 |
| Cash ratio | 1.80 | 1.41 | 1.14 | 1.55 | 3.69 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($416,434K
+ $—K)
÷ $231,678K
= 1.80
The cash ratio of ANGI Homeservices Inc has demonstrated notable variation over the period from December 31, 2020, to December 31, 2024. At the close of 2020, the cash ratio stood at 3.69, indicating a strong liquidity position characterized by a significant amount of cash and cash equivalents relative to its current liabilities. This high ratio suggests that on that date, the company was well-positioned to meet its short-term obligations solely with its liquid assets.
Following this period, the cash ratio experienced a substantial decline, decreasing to 1.55 at the end of 2021. This reduction signals a decreasing preference or ability to rely solely on cash and cash equivalents for short-term liabilities, although the ratio still reflects a comfortable liquidity buffer.
By the end of 2022, the cash ratio further diminished to 1.14. This continued decline indicates that the company's liquidity position, in terms of immediate cash relative to current liabilities, has become more conservative. While still above 1.0—implying that cash and cash equivalents exceed current liabilities—the ratio's near-closure to a lower threshold may highlight strategic shifts or adjustments in cash management.
Moving into the subsequent years, the cash ratio increased to 1.41 in 2023 and further to 1.80 in 2024. The upward trend signifies an improvement in liquidity, with the company accumulating or reallocating cash resources to strengthen its ability to meet short-term obligations without requiring additional liquid assets or liquidating other current assets.
Overall, the observed trend indicates an initial high-level liquidity that decreased significantly during 2021 and 2022, followed by a recovery phase beginning in 2023 and extending into 2024. This pattern may reflect strategic liquidity management, changes in current liabilities, or shifts in cash holdings. The current ratio remains above 1 throughout the period, underscoring that ANGI Homeservices Inc maintains sufficient liquid assets relative to its short-term liabilities, albeit with varying degrees of liquidity intensity over time.
Peer comparison
Dec 31, 2024