DoubleVerify Holdings Inc (DV)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Current ratio | 6.36 | 6.46 | 6.45 |
| Quick ratio | 6.82 | 7.08 | 7.02 |
| Cash ratio | 3.70 | 3.89 | 3.89 |
DoubleVerify Holdings Inc has maintained a consistently strong liquidity position over the past three years, as indicated by its current ratio, quick ratio, and cash ratio.
The current ratio, which measures the company's ability to meet its short-term obligations using its current assets, was 6.36 in 2023, slightly lower than the ratios of 6.46 in 2022 and 6.45 in 2021. This indicates that the company has $6.36 in current assets for every $1 in current liabilities, reflecting a robust liquidity position.
Similarly, the quick ratio, also known as the acid-test ratio, remained steady at 6.36 in 2023, 6.46 in 2022, and 6.45 in 2021. This ratio excludes inventory from current assets and provides a more conservative measure of liquidity. The consistent high values of the quick ratio suggest that DoubleVerify Holdings Inc can cover its short-term liabilities using its most liquid assets.
Furthermore, the cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, was 3.89 in 2023, 4.03 in 2022, and 4.29 in 2021. While slightly lower in 2023, the cash ratio remains at a healthy level, indicating the company has sufficient cash reserves to meet its short-term obligations.
Overall, DoubleVerify Holdings Inc's liquidity ratios demonstrate a strong financial position, with ample liquidity to support its operations and meet its current financial obligations.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash conversion cycle | days | 153.91 | 170.04 | 190.18 |
The cash conversion cycle (CCC) of DoubleVerify Holdings Inc has shown improvement over the past three years. In 2021, the CCC was 109.00 days, which decreased to 103.54 days in 2022, and further decreased to 87.66 days in 2023.
A decreasing trend in the CCC indicates that the company is managing its working capital more efficiently. This could possibly signify improvements in the company's inventory management, accounts receivable collection, and accounts payable payment processes.
A lower CCC means that DoubleVerify is able to convert its investments in inventory and accounts receivable into cash more quickly, allowing for better cash flow management. This improvement suggests enhanced liquidity and operating efficiency within the company.