Godaddy Inc (GDDY)

Quick 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	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
Receivables	US$ in thousands	76,600	75,300	67,200	68,700	60,100	64,000	60,500	59,700	63,600	63,800	54,600	48,300	41,800	38,700	33,400	31,600	30,200	29,000	24,800	35,400
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($458,800K + $40,000K + $76,600K) ÷ $2,683,100K
= 0.21

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (current assets excluding inventory) by current liabilities. A quick ratio of 1 or higher is generally considered healthy, indicating that a company can cover its current liabilities without relying on inventory.

In the case of Godaddy Inc, the quick ratio has exhibited some fluctuation over the quarters provided. The quick ratio ranged from 0.44 to 0.65 in 2023, showing a slight improvement from the beginning to the end of the year. The ratio was highest in Q1 2023 at 0.65, indicating a stronger ability to meet short-term obligations with liquid assets at that time.

Comparing these values to the previous year, we see that the quick ratio was consistently above 0.60 in 2022, with the highest value of 0.71 in Q3 2022. This suggests that in 2023, Godaddy Inc may have faced slightly more liquidity challenges compared to the previous year.

It is important to note that a quick ratio below 1 may indicate potential liquidity concerns as the company may struggle to cover its short-term obligations without relying on selling inventory. It would be advisable for investors and stakeholders to monitor Godaddy Inc's quick ratio over time to assess its liquidity position and financial health.