DoubleVerify Holdings Inc (DV)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 5.40 | 6.36 | 6.46 | 6.45 | 4.17 |
| Quick ratio | 3.00 | 3.70 | 3.89 | 3.89 | 0.98 |
| Cash ratio | 3.00 | 3.70 | 3.89 | 3.89 | 0.98 |
DoubleVerify Holdings Inc's liquidity ratios show a positive trend over the past years.
1. Current Ratio:
- The current ratio has increased consistently from 4.17 in 2020 to 5.40 in 2024. This indicates the company's ability to cover its short-term liabilities with its current assets has improved over the years. A current ratio above 1 indicates that the company can meet its short-term obligations.
2. Quick Ratio:
- The quick ratio also displays an upward trend, improving from 0.98 in 2020 to 3.00 in 2024. This signifies that the company's ability to meet its short-term obligations with its most liquid assets (excluding inventory) has strengthened significantly. A ratio of 1 or higher is typically considered healthy.
3. Cash Ratio:
- The cash ratio mirrors the trend seen in the quick ratio, starting at 0.98 in 2020 and rising to 3.00 in 2024. This indicates the company's ability to cover its short-term obligations with cash and cash equivalents has notably improved. A higher cash ratio suggests a stronger ability to cover immediate liabilities without relying on other current assets.
Overall, the increasing trend in all three liquidity ratios suggests that DoubleVerify Holdings Inc has been effectively managing its short-term liquidity and has a strong ability to meet its current financial obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the provided data, DoubleVerify Holdings Inc has consistently maintained a cash conversion cycle of 0.00 days for the years 2020, 2021, 2022, 2023, and 2024. This indicates that the company is able to convert its investments in inventory and other resources back into cash very quickly, essentially operating with almost instantaneous cash cycles.
A cash conversion cycle of 0.00 days suggests that DoubleVerify is efficiently managing its working capital and effectively collecting receivables, managing payables, and optimizing its inventory turnover. This efficiency in converting its resources into cash can lead to improved liquidity, reduced financing needs, and potentially lower operating costs related to working capital management.
Overall, the consistent 0.00 days cash conversion cycle indicates strong financial management and working capital efficiency within DoubleVerify Holdings Inc during the specified years.