Godaddy Inc (GDDY)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.72 | 0.56 | 0.48 | 0.55 | 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 |
| Quick ratio | 0.40 | 0.28 | 0.22 | 0.30 | 0.19 | 0.20 | 0.29 | 0.41 | 0.38 | 0.46 | 0.37 | 0.33 | 0.53 | 0.47 | 0.57 | 0.55 | 0.33 | 0.28 | 0.26 | 0.40 |
| Cash ratio | 0.40 | 0.28 | 0.22 | 0.30 | 0.19 | 0.20 | 0.29 | 0.41 | 0.38 | 0.46 | 0.37 | 0.33 | 0.53 | 0.47 | 0.57 | 0.55 | 0.33 | 0.28 | 0.26 | 0.40 |
The liquidity ratios of Godaddy Inc indicate the company's ability to meet its short-term financial obligations.
1. Current ratio:
The current ratio measures the company's ability to pay its short-term obligations with its current assets. From March 31, 2020, to December 31, 2024, Godaddy Inc's current ratio fluctuated between 0.44 and 0.81. The ratio increased slightly towards the end of 2021 but then declined in 2022 and 2023 before showing a slight improvement at the end of 2024. Overall, the current ratio indicates that Godaddy Inc may have had some challenges in meeting its short-term obligations during the period under review.
2. Quick ratio:
The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more stringent measure of liquidity. The quick ratio for Godaddy Inc ranged from 0.19 to 0.57 between March 31, 2020, and December 31, 2024. The ratio generally follows a similar trend as the current ratio, showing fluctuations over the period. The quick ratio also suggests that the company may have faced liquidity challenges, especially in 2022 and 2023.
3. Cash ratio:
The cash ratio is the most conservative liquidity measure, considering only cash and cash equivalents to cover current liabilities. Godaddy Inc's cash ratio ranged from 0.19 to 0.57 from March 31, 2020, to December 31, 2024. Similar to the current and quick ratios, the cash ratio also shows variability, indicating potential difficulties in meeting short-term obligations.
In conclusion, the liquidity ratios of Godaddy Inc demonstrate fluctuations and potential liquidity challenges during the period under review. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 104.93 | 0.00 | 0.00 | 0.00 | 110.50 | 110.86 | 116.26 | 117.21 | 107.58 | 109.70 | 111.28 | 122.52 | 127.63 | 134.09 | 134.35 | 133.42 | 133.63 | 142.19 | 141.21 |
The cash conversion cycle for Godaddy Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
During the period, the cash conversion cycle ranged from a high of 142.19 days in June 30, 2020, to a low of 107.58 days in September 30, 2022. This indicates that the company was able to more efficiently manage its cash flows and working capital during that period.
Notably, there were significant improvements in the cash conversion cycle towards the end of the timeline, with the cycle dropping to 0 days in December 31, 2023, and March 31, 2024. This suggests that the company was able to optimize its inventory and receivables management, leading to quicker conversion of assets into cash.
The company experienced a slight increase in the cash conversion cycle in the subsequent periods, with the cycle standing at 104.93 days in September 30, 2024. This increase may suggest a temporary slowdown in cash flow efficiency or a change in the company's operating cycle.
Overall, analyzing the cash conversion cycle provides insights into Godaddy Inc's ability to efficiently manage working capital, inventory levels, and receivables, which are crucial factors for the company's liquidity and operational efficiency.