Shutterstock (SSTK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 111,251 | 100,490 | 115,154 | 314,000 | 428,574 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 625,286 | 452,386 | 383,734 | 333,784 | 256,929 |
| Cash ratio | 0.18 | 0.22 | 0.30 | 0.94 | 1.67 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($111,251K
+ $—K)
÷ $625,286K
= 0.18
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Based on the provided data for Shutterstock's cash ratio over the years, we observe a decreasing trend from 1.67 in December 2020 to 0.18 in December 2024. This decline may suggest a reduction in the company's liquidity position and its ability to cover immediate financial obligations solely with cash.
A cash ratio of 0.94 in December 2021 and 0.30 in December 2022 indicate that the company had lower cash reserves compared to its short-term liabilities during these periods. Furthermore, the ratios of 0.22 in December 2023 and 0.18 in December 2024 signify a further decrease in liquidity, potentially raising concerns about the company's ability to meet its short-term financial commitments using cash on hand.
Overall, the decreasing trend in Shutterstock's cash ratio over the years highlights a potential liquidity challenge that may require attention to ensure the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024