ANGI Homeservices Inc (ANGI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 416,434 | 364,044 | 321,155 | 428,136 | 812,705 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 49,995 |
| Receivables | US$ in thousands | 36,670 | 51,100 | 71,967 | 84,387 | 43,148 |
| Total current liabilities | US$ in thousands | 231,678 | 258,655 | 281,784 | 276,509 | 233,678 |
| Quick ratio | 1.96 | 1.61 | 1.40 | 1.85 | 3.88 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($416,434K
+ $—K
+ $36,670K)
÷ $231,678K
= 1.96
The quick ratio of ANGI Homeservices Inc demonstrates notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company's quick ratio stood at 3.88, indicating a strong liquidity position with ample liquid assets relative to current liabilities. This high ratio suggests that the company was well-positioned to cover its short-term obligations without relying on inventory sales.
By the end of 2021, the quick ratio declined significantly to 1.85, reflecting a reduction in the company's liquid assets relative to its current liabilities. This decrease may indicate either a decrease in liquid assets, an increase in current liabilities, or a combination of both, potentially signaling a shift toward a more conservative liquidity stance or operational changes affecting liquidity management.
The trend continued into 2022, with the ratio further decreasing to 1.40. Such a decline suggests further tightening of liquidity, although the ratio remains above 1, implying that liquid assets still surpass current liabilities. Nonetheless, the narrowing margin could warrant attention regarding the company's ability to meet short-term obligations without stretching liquid resources.
By the end of 2023, the quick ratio increased slightly to 1.61, indicating an improvement in liquidity position, possibly due to efforts to bolster liquid assets or reduce current liabilities. This modest recovery points toward a stabilization of liquidity levels after prior declines.
Looking ahead to the end of 2024, the quick ratio further improved to 1.96. This upward movement signifies a strengthening of the company's short-term liquidity position, nearing two times its current liabilities. Such an increase suggests enhanced liquidity management, providing a more comfortable buffer against short-term financial demands.
Overall, the analysis indicates that ANGI Homeservices Inc experienced a period of liquidity contraction from 2020 through 2022, followed by a gradual recovery from 2023 onwards. The trend towards increasing quick ratios in recent years may reflect strategic efforts to improve liquidity resilience. However, the ratios throughout the period remain below their 2020 peak, implying that liquidity positions have become more conservative but still maintain adequate levels to meet short-term liabilities.
Peer comparison
Dec 31, 2024