Match Group Inc (MTCH)

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 2.39 1.96 2.11 1.72 1.59 1.17 1.28 1.15 1.04 1.41 1.10 2.56 2.04 1.51 0.98 3.32 3.67 3.56 4.11 3.12
Quick ratio 2.20 1.76 1.90 1.51 1.39 0.95 1.04 1.03 0.87 0.94 0.88 2.25 1.75 1.94 0.69 1.16 0.79 1.00 1.00 2.87
Cash ratio 1.63 1.25 1.39 1.05 1.04 0.66 0.75 0.86 0.71 0.70 0.43 1.80 1.48 1.53 0.28 0.81 0.48 0.66 0.62 2.49

Analyzing the liquidity ratios of Match Group Inc., we can see a positive trend in the company's ability to meet its short-term obligations over the quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently above 1, indicating a healthy liquidity position. In Q4 2023, the current ratio reached 2.39, showing an improvement from the previous quarters and suggesting the company has more than enough current assets to cover its current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, has also shown a consistent and strong performance across the quarters. This ratio has mirrored the current ratio, indicating that Match Group Inc. has a solid ability to cover its short-term obligations even without relying on inventory.

Furthermore, the cash ratio, which is the most stringent measure of liquidity as it considers only cash and cash equivalents to current liabilities, has also demonstrated a positive trend. The cash ratio has steadily increased over the quarters, reaching 1.83 in Q4 2023, indicating that Match Group Inc. has a comfortable level of cash to cover its current liabilities.

Overall, based on the liquidity ratios analysis, Match Group Inc. appears to have a strong liquidity position, with an increasing ability to meet its short-term obligations without facing liquidity constraints. This suggests that the company is well-equipped to handle its financial commitments and unexpected cash needs in the near future.

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 30.01 30.05 29.54 27.20 19.80 17.04 17.92 16.37 42.11 16.26 20.50 26.84 33.71 29.27 29.11 47.14 24.19 15.68 5.14 2.37

The cash conversion cycle of Match Group Inc. has experienced some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively short cash conversion cycle of 12.19 days, indicating efficient management of its cash flow. However, this cycle steadily increased over the next few quarters, reaching its peak in Q3 2023 at 27.80 days before slightly decreasing to 27.35 days in Q4 2023.

Overall, Match Group Inc. has maintained a relatively stable cash conversion cycle in the range of 24 to 28 days during the past year. This suggests that the company takes approximately a month to convert its investments in inventory and accounts receivable into cash, indicating moderate efficiency in managing its working capital. Further analysis and comparison with industry benchmarks may provide insights into the effectiveness of Match Group Inc.'s cash conversion cycle relative to its peers.