Godaddy Inc (GDDY)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 1,089,000 458,800 774,000 1,255,700 765,200
Short-term investments US$ in thousands 0 40,000 173,000 24,700 2,000
Total current liabilities US$ in thousands 2,698,400 2,683,100 2,459,800 2,436,700 2,314,200
Cash ratio 0.40 0.19 0.38 0.53 0.33

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,089,000K + $0K) ÷ $2,698,400K
= 0.40

The cash ratio of Godaddy Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.33, indicating that the company had $0.33 in cash and cash equivalents for every $1 of current liabilities. This ratio improved to 0.53 by December 31, 2021, suggesting an increase in the company's ability to cover its short-term obligations with its available cash.

However, by December 31, 2022, the cash ratio decreased to 0.38, indicating a slight reduction in liquidity compared to the previous year. The ratio experienced a more significant decline to 0.19 by December 31, 2023, potentially signaling a decrease in the company's ability to meet its short-term debt obligations with its current cash reserves.

Subsequently, the cash ratio improved to 0.40 by December 31, 2024, indicating a slight recovery in liquidity. Overall, fluctuations in the cash ratio of Godaddy Inc over the years suggest varying levels of liquidity and the company's ability to manage its short-term financial obligations with available cash resources.