DoubleVerify Holdings Inc (DV)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash and cash equivalents	US$ in thousands	310,131	267,813	221,591
Short-term investments	US$ in thousands	—	—	—
Total current liabilities	US$ in thousands	83,855	68,910	57,033
Cash ratio		3.70	3.89	3.89

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($310,131K + $—K) ÷ $83,855K
= 3.70

The cash ratio represents the company's ability to cover its short-term liabilities with its available cash and cash equivalents. DoubleVerify Holdings Inc's cash ratio has seen a slight decline over the past three years, from 4.29 in 2021 to 4.03 in 2022 and further to 3.89 in 2023.

A cash ratio above 1 indicates that the company has sufficient cash to cover its short-term obligations, with a higher ratio indicating a stronger ability to meet those obligations. DoubleVerify's cash ratio is well above 1 in all three years, indicating a healthy liquidity position.

While the decreasing trend in the cash ratio may raise some concerns regarding the company's ability to cover its short-term liabilities with cash alone, it is important to consider other liquidity metrics and the company's overall financial health to gain a comprehensive understanding of its liquidity position.