New York Times Company (NYT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 199,448 | 289,472 | 221,385 | 319,973 | 286,079 |
| Short-term investments | US$ in thousands | 366,474 | 162,094 | 125,972 | 341,075 | 309,080 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 613,529 | 611,559 | 571,210 | 559,152 | 486,748 |
| Quick ratio | 0.92 | 0.74 | 0.61 | 1.18 | 1.22 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,448K
+ $366,474K
+ $—K)
÷ $613,529K
= 0.92
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 excluding inventory.
New York Times Company's quick ratio has shown fluctuating trends over the past five years. From 2020 to 2021, the quick ratio decreased slightly from 1.22 to 1.18, indicating a slight reduction in the company's ability to cover its short-term liabilities with its quick assets.
However, there was a significant drop in the quick ratio from 2021 to 2022, where it decreased to 0.61. This suggests a considerable decline in the company's ability to meet its short-term obligations using its liquid assets. The decrease in the quick ratio to 0.61 may raise concerns about the company's liquidity position during that period.
From 2022 to 2024, there was a slow improvement in the quick ratio, increasing to 0.74 in 2023 and further to 0.92 in 2024. Although the quick ratio is still below 1 in these years, the upward trend indicates an improvement in the company's ability to cover its short-term liabilities with its quick assets.
Overall, the fluctuating quick ratio of New York Times Company over the analyzed period highlights the importance of monitoring liquidity levels to ensure the company can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2024