Godaddy Inc (GDDY)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 458,800 774,000 1,255,700 765,200 1,062,800
Short-term investments US$ in thousands 40,000 0 24,700 0 23,600
Total current liabilities US$ in thousands 2,683,100 2,459,800 2,436,700 2,314,200 2,001,100
Cash ratio 0.19 0.31 0.53 0.33 0.54

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($458,800K + $40,000K) ÷ $2,683,100K
= 0.19

The cash ratio of Godaddy Inc has shown fluctuations over the past five years. In 2023, the cash ratio decreased to 0.43 from 0.60 in 2022, indicating a lower proportion of cash and cash equivalents relative to current liabilities. This decline may suggest that the company has less immediate liquidity to cover its short-term obligations in 2023 compared to the previous year.

It's worth noting that the cash ratio was at its highest in 2021 at 0.73, which may imply a stronger ability to cover short-term liabilities with cash reserves during that year. However, the ratio dropped to 0.53 in 2020 and further to 0.76 in 2019, showing fluctuations in the company's cash position over the years.

Overall, the decreasing trend in the cash ratio from 2019 to 2023 may indicate potential challenges in maintaining sufficient liquidity to meet short-term obligations for Godaddy Inc. Monitoring this ratio closely can provide insights into the company's financial health and its ability to manage liquidity effectively.