New York Times Company (NYT)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 1.53 1.28 1.15 1.70 1.72
Quick ratio 0.92 0.74 0.61 1.18 1.22
Cash ratio 0.92 0.74 0.61 1.18 1.22

The liquidity ratios of New York Times Company show fluctuations over the years. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has decreased from 1.72 in 2020 to 1.53 in 2024. This indicates a slight decline in the company's liquidity position over the period.

Similarly, the quick ratio, also known as the acid-test ratio, reflects the company's ability to meet short-term liabilities with its most liquid assets. The quick ratio has shown a downward trend from 1.22 in 2020 to 0.92 in 2024, suggesting a decrease in the company's ability to quickly cover its immediate obligations.

The cash ratio, which specifically measures the proportion of a company's current assets that are in cash or cash equivalents, has followed a similar pattern as the quick ratio. It has declined from 1.22 in 2020 to 0.92 in 2024, indicating a reduction in the company's cash reserves relative to its short-term liabilities.

Overall, the decreasing trend in these liquidity ratios raises some concerns about New York Times Company's ability to meet its short-term obligations and maintain sufficient liquidity levels in the coming years. It may be important for the company to closely monitor and manage its liquidity position to avoid any potential financial difficulties in the future.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 0.00 0.00 16.56 11.66 11.21

The cash conversion cycle of New York Times Company has demonstrated some fluctuations over the years. In December 2020, the company's cash conversion cycle was 11.21 days, indicating that it took approximately 11 days to convert its investments in inventory and other resources into cash receipts. By December 2021, this figure increased slightly to 11.66 days, possibly due to changes in the company's operational efficiency or market conditions.

However, a significant spike in the cash conversion cycle was observed by December 2022, reaching 16.56 days. This suggests that the company faced challenges in managing its cash flow and working capital effectively, which may have resulted in longer payment cycles or delays in receiving cash from its operational activities.

Interestingly, the cash conversion cycle dropped to 0.00 days by December 2023 and remained at the same level by December 2024. A cash conversion cycle of 0.00 days indicates that the company was able to improve its efficiency in converting its resources into cash receipts almost instantly, which can be a positive sign of strong financial management and effective working capital practices.

Overall, fluctuations in the cash conversion cycle of New York Times Company reflect changes in its working capital management and operational efficiency over the years, highlighting the importance of monitoring this metric to ensure healthy cash flow and financial performance.