Match Group Inc (MTCH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 965,993 | 862,440 | 572,395 | 815,384 | 739,164 |
| Short-term investments | US$ in thousands | 4,734 | 6,200 | 8,723 | 11,818 | 347,976 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 549,461 | 531,768 | 556,354 | 1,168,300 | 500,036 |
| Quick ratio | 1.77 | 1.63 | 1.04 | 0.71 | 2.17 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($965,993K
+ $4,734K
+ $—K)
÷ $549,461K
= 1.77
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.
Analyzing the quick ratio trend of Match Group Inc over the past five years reveals fluctuations in its liquidity position.
As of December 31, 2020, the quick ratio stood at a healthy 2.17, indicating the company had more than enough liquid assets to cover its short-term liabilities. However, by the end of 2021, the quick ratio dropped significantly to 0.71, indicating a potential liquidity strain or the company's decreased ability to meet its short-term obligations.
In the subsequent years, Match Group Inc managed to improve its quick ratio, reaching 1.04 by the end of 2022, 1.63 by the end of 2023, and 1.77 by the end of 2024. These values suggest an enhanced liquidity position compared to the low point in 2021, demonstrating the company's improved ability to cover its short-term liabilities with its liquid assets.
Overall, Match Group Inc's quick ratio has shown variability over the years, with fluctuations that reflect changes in its liquidity position. It is important for investors and stakeholders to monitor this ratio to assess the company's short-term liquidity risk and financial health.
Peer comparison
Dec 31, 2024