Shutterstock (SSTK)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	100,490	115,154	314,000	428,574	303,261
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	452,386	383,734	333,784	256,929	245,894
Cash ratio		0.22	0.30	0.94	1.67	1.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($100,490K + $—K) ÷ $452,386K
= 0.22

The cash ratio of Shutterstock Inc has fluctuated over the past five years. The ratio decreased from 1.34 in 2019 to 1.02 in 2021, indicating a decrease in the company's ability to cover its short-term liabilities with cash alone. In 2022 and 2023, the cash ratio further declined to 0.39 and 0.45, respectively, suggesting a continued trend of decreasing liquidity. A lower cash ratio may indicate potential liquidity challenges for the company in meeting its short-term obligations solely from its available cash reserves. It would be advisable for Shutterstock Inc to closely monitor and manage its liquidity position to ensure it can meet its financial obligations effectively.