Godaddy Inc (GDDY)

Current 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
Total current assets	US$ in thousands	1,255,900	1,199,300	1,411,800	1,730,100	1,582,600	1,769,800	1,551,700	1,443,700	1,889,800	1,769,500	1,990,800	1,891,700	1,291,300	1,135,900	1,304,500	1,365,600	1,575,300	1,484,600	1,720,400	1,611,800
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
Current ratio		0.47	0.45	0.54	0.67	0.64	0.71	0.63	0.58	0.78	0.71	0.81	0.79	0.56	0.51	0.44	0.64	0.79	0.75	0.85	0.82

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,255,900K ÷ $2,683,100K
= 0.47

The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

Looking at Godaddy Inc's current ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023 and Q3 2023, the current ratio stood at 0.47 and 0.45, respectively, indicating that the company may have potential liquidity issues to cover its short-term liabilities. In Q2 2023, the ratio improved to 0.54, but it still remains below the ideal threshold of 1.

Notably, the current ratio was stronger in Q1 2023 at 0.67, showing an improvement in the company's short-term liquidity position compared to the preceding quarters. However, further back in Q4 2022 and Q3 2022, the current ratio was at 0.64 and 0.71, respectively, indicating potential concerns regarding the company's liquidity management during those periods.

In general, the current ratio of Godaddy Inc has shown variability, with some quarters indicating weaker liquidity positions than others. It would be advisable for stakeholders to closely monitor the company's management of short-term obligations and assess any potential liquidity risks going forward.