DoubleVerify Holdings Inc (DV)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.36 | 6.28 | 7.43 | 6.27 | 6.46 | 7.01 | 8.06 | 8.29 | 6.45 | 11.29 | 11.91 | 4.85 |
| Quick ratio | 6.82 | 6.71 | 7.91 | 6.69 | 7.08 | 7.40 | 8.45 | 8.62 | 7.02 | 12.00 | 12.26 | 5.29 |
| Cash ratio | 3.70 | 3.47 | 4.46 | 3.76 | 3.89 | 4.19 | 4.66 | 4.74 | 3.89 | 8.50 | 9.15 | 1.62 |
Based on the liquidity ratios provided for DoubleVerify Holdings Inc, we can see a consistently strong liquidity position over the past eight quarters.
The current ratio, a measure of the company's ability to meet short-term obligations with its current assets, has shown stability and remained above 6 in all quarters, indicating that the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, which provides a more stringent measure by excluding inventory from current assets, has mirrored the trend of the current ratio and remained well above 6 in each quarter. This suggests that even without inventory, the company has a strong ability to cover its short-term liabilities.
The cash ratio, a more stringent measure of liquidity that focuses solely on cash and cash equivalents to cover current liabilities, also shows a consistently healthy position above 3 in all quarters. This indicates that the company holds a substantial amount of cash relative to its short-term obligations, providing further assurance of its ability to meet its financial commitments.
Overall, based on the analysis of the liquidity ratios, DoubleVerify Holdings Inc appears to have maintained a robust liquidity position throughout the periods analyzed, which is a positive indicator of its financial health and ability to weather short-term financial challenges.
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 154.09 | 155.70 | 156.52 | 158.13 | 169.93 | 144.32 | 160.12 | 170.28 | 190.46 |
The cash conversion cycle for DoubleVerify Holdings Inc has exhibited variations over the past eight quarters. It is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle lengthened to 87.66 days compared to the previous quarter at 94.96 days. This suggests that the company took slightly less time to convert its resources into cash, indicating improved efficiency in managing its working capital.
Looking back further, the trend indicates fluctuations in the cash conversion cycle. Notably, in Q2 2022, the cycle was at its highest of 112.34 days, indicating that the company took longer to convert its resources into cash during that period. Conversely, in Q3 2022, the cycle decreased significantly to 59.64 days, showing improved efficiency and potentially stronger management of working capital.
Overall, analyzing the cash conversion cycle for DoubleVerify Holdings Inc provides insight into the company's operational efficiency and effectiveness in managing its working capital. It is essential for the company to monitor and manage this metric effectively to optimize its cash flows and profitability.