Match Group Inc (MTCH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 862,440 | 572,395 | 815,384 | 739,164 | 465,676 |
| Short-term investments | US$ in thousands | 6,200 | 8,723 | 11,818 | 0 | 19,993 |
| Receivables | US$ in thousands | 298,648 | 191,940 | 188,482 | 137,023 | 307,642 |
| Total current liabilities | US$ in thousands | 531,768 | 556,354 | 1,168,300 | 500,036 | 1,010,180 |
| Quick ratio | 2.20 | 1.39 | 0.87 | 1.75 | 0.79 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($862,440K
+ $6,200K
+ $298,648K)
÷ $531,768K
= 2.20
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. A higher quick ratio indicates stronger liquidity and a lower risk of financial distress.
In the case of Match Group Inc., the quick ratio has fluctuated over the past five years. In 2019, the quick ratio was notably high at 3.68, suggesting a robust ability to cover short-term liabilities with liquid assets. However, in 2021, the quick ratio decreased significantly to 1.04, indicating a potential liquidity squeeze and a higher risk of difficulties in meeting short-term obligations.
The quick ratio rebounded in 2022 to 1.59, reflecting an improvement in liquidity. The most recent data for 2023 shows a further increase in the quick ratio to 2.39, indicating a healthier liquidity position compared to the previous year.
Overall, Match Group Inc.'s quick ratio has shown variability, but the current trend suggests an improvement in liquidity and the company's ability to cover its short-term liabilities with its quick assets. It is essential to continue monitoring this ratio to ensure ongoing liquidity stability.
Peer comparison
Dec 31, 2023