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.
Peer comparison
Dec 31, 2023