Match Group Inc (MTCH)

Match Group Inc's liquidity ratios have shown fluctuations over the years. The current ratio decreased from 2.04 in 2020 to 1.04 in 2021, indicating a decrease in short-term liquidity. However, it improved in the following years, reaching 2.54 in 2024, reflecting a strong ability to cover short-term obligations with current assets.

The quick ratio, a more stringent measure of liquidity, declined from 2.17 in 2020 to 0.71 in 2021, suggesting a potential difficulty in meeting immediate obligations with only the most liquid assets. However, similar to the current ratio, it recovered in the subsequent years, with a value of 1.77 in 2024, showing an improvement in short-term liquidity position.

The cash ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents, also followed a similar pattern to the quick ratio, with a decrease from 2.17 in 2020 to 0.71 in 2021 and a subsequent increase to 1.77 in 2024, indicating an enhancement in the company's cash position relative to its current liabilities.

Overall, it appears that Match Group Inc has managed to strengthen its liquidity position over the years, as evidenced by the improvement in all three liquidity ratios from 2021 to 2024. However, monitoring these ratios continuously is essential to ensure the company can meet its short-term obligations effectively.

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Additional liquidity measure

Match Group Inc's cash conversion cycle for the past five years has shown variations. As of December 31, 2020, the company had a cash conversion cycle of 60.47 days. This indicates that it took over two months for Match Group Inc to convert its investments in inventory and accounts receivable into cash.

Subsequently, in both December 31, 2021, and December 31, 2022, Match Group Inc's cash conversion cycle decreased to 0.00 days. A cash conversion cycle of zero suggests that the company managed to convert its investments into cash almost instantaneously. This can be a sign of strong cash management practices and efficient operations.

However, by December 31, 2023, the cash conversion cycle increased to 17.26 days, showing that Match Group Inc took slightly longer to convert its resources into cash compared to the previous years. It is essential for the company to monitor this trend to ensure it does not signify underlying issues affecting its cash flow.

Lastly, as of December 31, 2024, Match Group Inc's cash conversion cycle returned to 0.00 days, indicating a quick turnaround in converting investments into cash. Overall, fluctuations in the cash conversion cycle can provide insights into the company's liquidity management, operational efficiency, and effectiveness in managing working capital.