Godaddy Inc (GDDY)

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	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
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
Quick ratio	0.21	0.23	0.31	0.43	0.34	0.48	0.40	0.32	0.54	0.49	0.58	0.56	0.35	0.30	0.27	0.42	0.56	0.52	0.62	0.58
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

Godaddy Inc's liquidity ratios have shown some fluctuations over the past eight quarters. Let's start with the current ratio, which measures the company's ability to cover its short-term liabilities with its current assets. The current ratio has ranged from 0.45 to 0.67, indicating a downward trend in liquidity over the periods analyzed.

Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see a similar trend with values ranging from 0.44 to 0.65. This suggests that the company may have difficulty meeting its short-term obligations without relying on inventory.

Lastly, the cash ratio, which is the most conservative liquidity metric, considers only cash and cash equivalents in relation to current liabilities. The cash ratio for Godaddy Inc has varied between 0.41 and 0.62, highlighting a decreasing trend in the company's ability to cover its immediate liabilities with cash on hand.

Overall, based on these liquidity ratios, it appears that Godaddy Inc may be facing challenges in maintaining a strong liquidity position and should closely monitor its ability to meet short-term obligations without relying heavily on inventory or other current assets.

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	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 conversion cycle	days	-13.45	53.64	49.03	51.98	52.84	48.38	52.56	50.50	59.72	62.49	63.27	62.33	63.99	63.95	63.81	59.69	71.21	81.88	93.58	113.90

The cash conversion cycle of Godaddy Inc has shown a consistent trend of improvement over the past eight quarters. In the most recent quarter, Q4 2023, the company's cash conversion cycle decreased to -27.78 days, indicating that the company is efficiently managing its working capital.

The negative values of the cash conversion cycle suggest that Godaddy has been able to convert its resources into cash at a faster rate, which is a positive sign for the company's liquidity and operational efficiency. This trend of decreasing cash conversion cycle from Q1 2022 to Q4 2023 signifies that Godaddy has been able to optimize its cash flow management and achieve faster cash turnover.

Overall, the improving trend in Godaddy's cash conversion cycle reflects the company's effective management of its accounts receivable, inventory, and accounts payable, leading to a more efficient cash flow cycle. It suggests that the company is effectively managing its working capital and operations, which is crucial for sustaining and growing its business in the long term.