Godaddy Inc (GDDY)

Cash ratio

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	458,800	329,200	582,600	892,400	774,000	826,200	770,400	742,700	1,255,700	1,143,400	1,375,200	1,293,100	765,200	621,800	772,700	851,400	1,062,800	966,700	1,198,800	1,090,300
Short-term investments	US$ in thousands	40,000	211,300	173,800	163,200	0	302,500	146,100	—	—	—	—	—	0	0	0	0	23,600	23,500	23,600	18,700
Total current liabilities	US$ in thousands	2,683,100	2,647,600	2,616,600	2,599,300	2,459,800	2,475,500	2,457,600	2,474,000	2,436,700	2,485,000	2,456,500	2,395,000	2,314,200	2,237,700	2,972,300	2,124,000	2,001,100	1,969,300	2,020,100	1,970,500
Cash ratio		0.19	0.20	0.29	0.41	0.31	0.46	0.37	0.30	0.52	0.46	0.56	0.54	0.33	0.28	0.26	0.40	0.54	0.50	0.61	0.56

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 exhibited some fluctuation over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 0.43 in Q4 2023, indicating that the company had $0.43 in cash for every $1 of current liabilities. This represents a slight decrease from the previous quarter's ratio of 0.41.

Looking further back, in Q3 2023, the cash ratio was 0.50, showing a higher level of liquidity compared to the most recent quarter. The ratio had been steadily declining from Q1 2023's ratio of 0.62, which was the highest observed in the provided data.

Comparing the current cash ratio with the same quarter of the previous year, it appears that Godaddy Inc's liquidity position has slightly weakened, as Q4 2022's cash ratio was higher at 0.60. Despite some fluctuations, the company's cash ratio has generally been within a relatively stable range over the past eight quarters, with values varying between 0.41 and 0.69.

Overall, while the cash ratio provides insights into Godaddy Inc's short-term liquidity position, it is important to consider other financial metrics and factors when assessing the company's overall financial health and performance.